Money as an institution of capitalism.On the relationship between money and uncertainty from a Keynesian perspective

Abstract

Dillard (1987) notes that to consider money as an institution of capitalism means to emphasise that the presence of money is an essential element in explaining fluctuations in income and employment. He states that Keynes?s General Theory offers a sound explanation of money as an institution of capitalism. Keynes?s explanation is based on a necessary condition, independent of money: the presence of uncertainty. The objective of the paper is to elaborate a different explanation of the role of money as an institution of capitalism according to which the presence of money constitutes the necessary condition to justify the importance of uncertainty.