Study of a Frank Knight's case for the discretionary monetary policy and against the liquidity preference theory

Research Project

Project/Area Number	21730167
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Single-year Grants
Research Field	Economic doctrine/Economic thought
Research Institution	Dokkyo University
Principal Investigator	KUROGI Ryo 獨協大学, 経済学部, 准教授 (90364728)
Project Period (FY)	2009 – 2011
Project Status	Completed (Fiscal Year 2011)
Budget Amount *help	¥3,250,000 (Direct Cost: ¥2,500,000、Indirect Cost: ¥750,000) Fiscal Year 2011: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000) Fiscal Year 2010: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000) Fiscal Year 2009: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Keywords	フランク・ナイト / 経済理論 / 経済学史 / 経済思想史
Research Abstract	Frank Knight, a neo-classical theorist and a central figure of the early liberal Chicagoans who had a significant effect to the New Deal banking reform, insisted that not only the unitary control of money supply by the federal institutions, but also the positive and discretionary financial policy are necessary to mitigate business cycle. This study of his case for the discretionary monetary policy and against the liquidity preference theory reveals the similarities and differences between Knight and Keynes or Keynesian and later neo-liberal Chicagoans, and so illuminates the blind spots of the conventional taxonomy about these "schools."