Hi, I am Randy Wright, the Ray Zemon Professor of Liquid Assets in the Department of Finance, Investment and Banking at the University of Wisconsin, as well as a Professor in their Department of Economics, and a consultant to the Federal Reserve Bank of Minneapolis and Chicago.
"Of Keynes's many beautiful passages, we like this one: "The public discover that it is the holders of notes who suffer taxation [from inflation]...and they begin to change their habits and to economize in their holding of notes. They can do this in various ways...[T]hey can reduce the amount of till-money and pocket-money that they keep and the average length of time for which they keep it, even at the cost of great personal inconvenience...By these means they can get along and do their business with an amount of notes having an aggregate real value substantially less than before. In Moscow the unwillingness to hold money except for the shortest possible time reached at one period a fantastic intensity. If a grocer sold a pound of cheese, he ran off with the rubles as fast as his legs could carry him to the Central Market to replenish his stocks by changing them into cheese again, lest they lost their value before he got there; thus justifying the prevision of economists in naming the phenomenon velocity of circulation! In Vienna, during the period of collapse...[it] became a seasonable witticism to allege that a prudent man at a cafe ordering a bock of beer should order a second bock at the same time, even at the expense of drinking it tepid, lest the price should rise meanwhile" [Keynes, 1924, A Tract on Monetary Reform, p. 51]. We like it not only because it involves beer and cheese, consistent with our Wisconsin connections, but also because Keynes was able to anticipate the usefulness of our benchmark specification where agents periodically visit the Central(ized) Market."
Williamson and Wright (2010), New Monetarist Economics: Methods.
"I shall wish to maintain the view that from our present standpoint Keynes's theory, and in particular his monetary theory, is best understood as a denial of the realism and the relevance of Arrow-Debreu equilibrium. Of course, Keynes did not and could not have put it in this way and in any case, while he had a poet's insight, he lacks the seriousness and care of a theoretician."
Frank Hahn (1973) "On the Foundations of Monetary Theory," in Modern Economics, M. Parkin and A. Nobay, eds., Barnes & Noble, New York.
"First they ignore you, then they ridicule you, then they fight you, then you win." ---------Mahatma Gandhi