Abstract

The relation between uncertainty and money is the central point of the keynesian monetary theory. In general the keynesian economists consider uncertainty as the exogenous variable starting from which the functions of money can be defined. The presence of uncertainty justifies the store of wealth function of money and is the element on which the keynesian theory of liquidity preference is founded. The aim of this paper is to show an alternative interpretation of the relation between uncertainty and money which explains the importance of uncertainty starting from the specifications of the characteristics of money. This interpretation is grounded on some Keynes's works which date back to 1933 and some works published between 1937 and 1939.