Don Patinkin's Contribution to Monetary Theory
I first met Don Patinkin when I was demobbed in 1949, after serving for many years in the Palmach, and moved to Jerusalem together with my friend Eliezer Sheffer to begin studying economics. Patinkin, who was a young lecturer, impressed us immensely with his excellent teaching method and modest, friendly personality. Over the years we became colleagues and close friends. But I am not going to talk about that today. The subject I have been asked to speak about is Don Patinkin's contribution to monetary theory.
Don's contribution to monetary theory found expression in four main spheres:
1. Presenting a closed and elegant monetary model, as expressed in his monumental book, Money, Interest and Prices (MIP).
2. Don's criticism of the monetary model as presented in its day by the classical and neo-classical economists.
3. His analysis of involuntary unemployment.
4. His formal analysis of the Keynesian model.