Portfolio models typically ignore precautionary transactions demands for liquid assets, and models of precautionary demands typically ignore asset rate-of-return risk. If asset-holders are risk-averse, however, both transactions risk and rate-of-return risk affect demands for both liquid and...

This paper proposes a reconsideration of Keynes’s original conception of the finance motive and its development by American post-Keynesians. The financial demand for money is seen as a short-term phenomenon taking place during an investment boom when the revolving fund of credit is incapable...

The object of the present paper is to clarify the concept of finance and to inquire about Keynes’s position on this topic. Two aspects of the supply of finance are distinguished: a) initial finance, namely the provision of liquidity needed in order to cover current cost, and b) final finance,...