Reply To: Some questions


Garrison’s categorization of money demand as part of the demand for present goods in the inter-temporal trade-off of present money for future money is controversial. People save to earn interest. Holding money itself earns no interest. Holding on to something is not lending it to someone else who uses it productively to generate a rate of return.

Consult Rothbard’s book, Man, Economy, and State for more on this view.

Rothbard’s diagrams (Ch. 6) dispense with the Keynesian comparison and present just the Austrian view.