A Guide to the Technical Finance Literature on Uncertainty Aversion

In the introduction to the first volume of his collected papers Boulding refers to paper No. 9 as, “I think, perhaps I would nominate as my most important contribution to economics (although, again, one to which no one has paid much attention). This note sets out Boulding’s analysis in this paper focusing primarily on the price determination component. It also looks at how his model can readily be modified to account for an endogenous-money economy subject to interest rate targeting. This analysis follows a precedent set by Randall-Wray (1991).