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What is the difference between Keynes's money demand theory and neoclassical economics?
They are different in economic framework, assumptions and policy suggestions.

1, different economic framework: Keynes's money demand theory is based on Keynesian economics, focusing on macroeconomic analysis of total demand and total supply; The money demand theory of neoclassical economics is based on neoclassical economics, and pays more attention to long-term equilibrium and micro-level of market.

2. Different assumptions: in Keynes's theory of money demand, money demand is usually regarded as a function, which is closely related to the relationship between income and interest rate; In the theory of money demand in neoclassical economics, money demand is considered to be mainly determined by interest rates.

3. Different policy suggestions: Based on Keynes's theory of money demand, the government and the central bank can influence the macro-economy by adjusting the money supply to achieve the goals of employment and inflation; Based on the money demand theory of neoclassical economics, government intervention is considered unnecessary, and the market mechanism will automatically adjust the money demand and supply.