From shells and gold to plastic and silicon: a theory of the evolution of money, in the spirit of Keynes

Economists have long held the view that the development of the financial system (financial deepening) and economic development are closely intertwined. The literature, however, contains relatively few formal models presumably because it has proved hard to integrate money and financial ininto a standard framework of macroeconomics and growth. This lecture borrows from a model of money and liquidity that he has developed with Nobuhiro Kiyotaki, a model in the spirit of Keynes - to explore the impact of financial deepening. Our theory allows us to trace the evolution of different kinds of money, from ancient to modern.

Professor John Moore was elected a Fellow of the British Academy in 1999. His principal publications include 'A proposal for bankruptcy reform in the UK', Insolvency, law and practice 1993; 'The governance of exchanges', Oxford Economic Papers 1996; joint author 'Credit cycles', J. Political Economy 1997.

Speaker:
Professor John Moore FBA, Professor of Political Economy, University of Edinburgh and Professor of Economic Theory, London School of Economics

Lecture Chair: Baroness O'Neill of Bengarve, President, British Academy

KEYNES LECTURE IN ECONOMICS
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