The first edition was published in 1956 and became very well known, but was also criticized, particularly about the dynamics of prices in response to changes in the money stock. The second edition, published in 1965, responded to this and other critiques, and achieved the goal set out in the book’s subtitle. In Note M of MIP (pp.
651-664) Patinkin reviews empirical investigations of the real-balance effect, noting that most of the studies are in effect estimates of the impact of liquid wealth holdings, rather than just real balances, on consumption. 3. Reviews of the book.