Abstract
The theory of saving and the rate of interest can — or at any rate should — never be independent of the state of development of financial institutions.1 In Chick (1983, ch. 9) it was argued that the reversal of causality in the saving-investment nexus proposed by Keynes (1936) should not be seen as correct theory in triumph over error but as a change in what constituted correct theory due to the development of the banking system.
The author wishes to thank Sheila Dow, Basil Moore, David Llewellyn, Otto Steiger, Brian Tew, and members of the seminar at the University of Buckingham for their helpful comments and suggestions. The final product is the author’s responsibility.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 1992 Victoria Chick
About this chapter
Cite this chapter
Chick, V. (1992). The Evolution of the Banking System and the Theory of Saving, Investment and Interest. In: Arestis, P., Dow, S.C. (eds) On Money, Method and Keynes. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21935-3_12
Download citation
DOI: https://doi.org/10.1007/978-1-349-21935-3_12
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-21937-7
Online ISBN: 978-1-349-21935-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)