The Foundations of a Monetary Production Economy

The simple inversion of John Stuart Mill’s famous dictum that in economics there is nothing more insignificant than money cannot be considered as a satisfactory characterisation of a monetary production economy. Money is not more significant than goods, nor is it less important. The formulation of abstract models in which monetary theory is given the position of importance formerly reserved for the analysis of goods is thus equally unacceptable. The generality of Keynes’s theory involves an analysis dealing with commodities as well as money and production as well as exchanges.