Providing for the optimum quantity of money

Abstract

The optimum quantity of money proposition, whose validity is agreed on, is actually open to criticism. The present paper argues that the weaknesses of the Friedman Rule from the application of the welfare theorems of general equilibrium theory to a monetary economy and shows how, the consistency of the criticism notwithstanding, the optimal solution can still be implemented.

Citation

Cesarano, F. (1998), "Providing for the optimum quantity of money", Journal of Economic Studies, Vol. 25 No. 6, pp. 441-449. https://doi.org/10.1108/01443589810233838