On the hoard of money and expanded reproduction

Abstract

The paper incorporates the hoard of money in a simple three-department scheme of expanded reproduction. The sui-generis features of the hoard of money are briefly set out. The paper then demonstrates that due to the existence of the hoard of money, it is possible for there to be generalised over-production of all non-money commodities. The paper concludes with some suggestions for further work in this research direction. JEL classifications: B14, B24, B51, E11.