Author: Michael Woodford
Publisher: Princeton University Press
ISBN: 1400830168
Category : Business & Economics
Languages : en
Pages : 805
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Book Description
With the collapse of the Bretton Woods system, any pretense of a connection of the world's currencies to any real commodity has been abandoned. Yet since the 1980s, most central banks have abandoned money-growth targets as practical guidelines for monetary policy as well. How then can pure "fiat" currencies be managed so as to create confidence in the stability of national units of account? Interest and Prices seeks to provide theoretical foundations for a rule-based approach to monetary policy suitable for a world of instant communications and ever more efficient financial markets. In such a world, effective monetary policy requires that central banks construct a conscious and articulate account of what they are doing. Michael Woodford reexamines the foundations of monetary economics, and shows how interest-rate policy can be used to achieve an inflation target in the absence of either commodity backing or control of a monetary aggregate. The book further shows how the tools of modern macroeconomic theory can be used to design an optimal inflation-targeting regime--one that balances stabilization goals with the pursuit of price stability in a way that is grounded in an explicit welfare analysis, and that takes account of the "New Classical" critique of traditional policy evaluation exercises. It thus argues that rule-based policymaking need not mean adherence to a rigid framework unrelated to stabilization objectives for the sake of credibility, while at the same time showing the advantages of rule-based over purely discretionary policymaking.
Author: Irving Fisher
Publisher:
ISBN:
Category : Money
Languages : en
Pages : 558
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Book Description
Author: Don Patinkin
Publisher: MIT Press (MA)
ISBN:
Category : Business & Economics
Languages : en
Pages : 648
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Book Description
A quarter of a century after the publication of the second edition, this classic work continues to be on the reading list of graduate courses in macroeconomics. Integrating monetary theory and value theory, "Money, Interest, and Prices "describes the demand functions for commodities and bonds (emphasizing the real balance effect) and uses these functions to carry out a static and dynamic analysis of the central problems of monetary theory - the effects of changes in the quantity of money and shifts in liquidity preference on interest, prices, and employment.This reprinted edition omits the supplementary notes on the literature and contains a new introduction indicating the ways that Patinkin has revised or augmented its analysis. The author discusses issues that have arisen around his disequilibrium approach to macroeconomics as well as his use of the money-in-the-utility function approach to the demand for money. Patinkin explains why he rejects the alternative overlapping generations and cash in advance approaches to this demand and briefly indicates how the books analysis can be extended to an open economy and to an economy with growth and refers the reader to more extensive treatments of the topics dealt with.Don Patinkin is Professor of Economics at Hebrew University in Jerusalem.
Author: Knut Wicksell
Publisher: Ludwig von Mises Institute
ISBN: 1610164253
Category : Interest
Languages : en
Pages : 275
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Book Description
Author: Milton Friedman
Publisher: HMH
ISBN: 0547542224
Category : Business & Economics
Languages : en
Pages : 303
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Book Description
The Nobel Prize–winning economist explains how value is created, and how that affects everything from your paycheck to global markets. In this “lively, enlightening introduction to monetary history” (Kirkus Reviews), one of the leading figures of the Chicago school of economics that rejected the theories of John Maynard Keynes offers a journey through history to illustrate the importance of understanding monetary economics, and how monetary theory can ignite or deepen inflation. With anecdotes revealing the far-reaching consequences of seemingly minor events—for example, how two obscure Scottish chemists destroyed the presidential prospects of William Jennings Bryan, and how FDR’s domestic politics helped communism triumph in China—as well as plain-English explanations of what the monetary system in the United States means for your personal finances and for everyone from the small business owner on Main Street to the banker on Wall Street, Money Mischief is an enlightening read from the author of Capitalism and Freedom and Free to Choose, who was called “the most influential economist of the second half of the twentieth century” by the Economist.
Author: John H. Cochrane
Publisher: Princeton University Press
ISBN: 0691243247
Category : Business & Economics
Languages : en
Pages : 585
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Book Description
A comprehensive account of how government deficits and debt drive inflation Where do inflation and deflation ultimately come from? The fiscal theory of the price level offers a simple answer: Prices adjust so that the real value of government debt equals the present value of taxes less spending. Inflation breaks out when people don’t expect the government to fully repay its debts. The fiscal theory is well suited to today’s economy: Financial innovation undermines money demand, and central banks don’t control the money supply or aggressively change interest rates, invalidating classic theories, while large debts and deficits threaten inflation and constrain monetary policy. This book presents a comprehensive account of this important theory from one of its leading developers and advocates. John Cochrane aims to make fiscal theory useful as a conceptual framework and modeling tool, and for analyzing history and policy. He merges fiscal theory with standard models in which central banks set interest rates, giving a novel account of monetary policy. He generalizes the theory to explain data and make realistic predictions. For example, inflation decreases in recessions despite deficits because discount rates fall, raising the value of debt; specifying that governments promise to partially repay debt avoids classic puzzles and allows the theory to apply at all times, not just during periods of high inflation. Cochrane offers an extensive rethinking of monetary doctrines and institutions through the eyes of fiscal theory, and analyzes the era of zero interest rates and post-pandemic inflation. Filled with research by Cochrane and others, The Fiscal Theory of the Price Level offers important new insights about fiscal and monetary policy.
Author: Knut Wicksell
Publisher:
ISBN: 1443722790
Category : Business & Economics
Languages : en
Pages : 256
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Book Description
INTEREST AND PRICES Geldzins und Guterpreise A STUDY OF THE CAUSES REGULATING THE VALUE OF MONEY By KNUT WiCKSELL Translated from the German by R. F. KAHN With an Introduction by PROFESSOR BERTIL OIIL1N Published on behalf of the Royal Economic Society by MACMILLAN AND CO., LIMITED ST. MARTINS STREET, LONDON 1936 COPYRIGHT PRINTED IN GREAT BRITAIN BY R. R. CLARK, LIMITED, EDINBURGH TRANSLATORS NOTE I IFAVE to express my sincere thanks to Miss Anna Schwarz schild, who read a portion of the manuscript with great care, and to Dr. Eduard Rosenbaum, who helped me out of many difficulties. The Appendix consists of Wicksells last published article, translated from the original Swedish by Mrs H. Norberg. Wicksells Geldzins und Giiterpreise was published at Jena by Gustav Fischer in 1898. Such footnotes as I have found it necessary to insert are enclosed in square brackets. R. F. K. CONTENTS PAGE INTRODUCTION BY PROFESSOR BERTH, OHLIN . . vii AUTHORS PREFACE ...... xxiii CHAPTER 1 INTRODUCTORY ....... 1 CHAPTER 2 PURCHASING POWER or MONEY AND AVERAGE PRICES . 7 CHAPTER 3 RELATIVE PRICES AND MONEY PRICES . . .18 CHAPTER 4 THE SO-CALLED COST OF PRODUCTION THEORY OF MONEY 29 CHAPTER 5 THE QUANTITY THEORY AND ITS OPPONENTS . .38 v vi INTEREST AND PRICES PAQM CHAPTER 6 THE VELOCITY OF CIRCULATION OF MONEY A. A Pure Cash Economy . . . . .51 B. Simple Credit ...... 59 C. An Organised Credit Economy . . . .62 CHAPTER 7 THE RATE OF INTEREST AS REGULATOR OF COMMODITY PRICES A. The Classical Theory and the School of TooJce . . 81 B. Simplest Hypothesis. Variations of the Rate of Interest when the Market Situation Remains otherwise Unaltered 87 CHAPTER 8 THE NATURAL RATE OF INTEREST ON CAPITAL AND THE RATEOF INTEREST ON LOANS . . . .102 CHAPTER 9 SYSTEMATIC EXPOSITION OF THE THEORY . A. The Causes which Determine the Natural Rate of Interest on Capital ....... 122 B. The Use of Money . . . . . .134 CHAPTER 10 INTERNATIONAL PRICE RELATIONSHIPS . . .157 CHAPTER 11 ACTUAL PRICE MOVEMENTS IN THE LIGHT OF THE PRECED ING THEORY . . . . . .165 CHAPTER 12 PRACTICAL PROPOSALS FOR THE STABILISATION OF THE VALUE OF MONEY . . . . . .178 APPENDIX THE MONETARY PROBLEM OF THE SCANDINAVIAN COUN TRIES ........ 197 INTRODUCTION To judge the character and importance of Knut Wicksells monetary doctrines, it is necessary to view them against the background of the monetary controversy of the late nineties. For some decades the organisation of an inter national gold standard had been the outstanding problem. Hardly had this organisation won its victory in the seventies, when its position was threatened by the con tinued fall in wholesale prices. A violent propaganda for bimetallism set in almost everywhere. The character, working, advantages, and disadvantages of this system naturally became the central topic of discussion in the monetary field. The old debate between the currency and the banking schools had died out and the latter un doubtedly held the field. The quantity theory of money was discredited, even in the Anglo-Saxon countries. Most writers agreed that if credits were granted on adequate security in accordance with sound banking principles, the supply of means of payment could not exceed the re quirements of the market. There was no discussion in that connection of the level of bank rate. Two things seem to have caused Wicksell to adopt an entirely different attitude to monetary problems. First ofall, he was a close student and admirer of the English classical school of economists, above all of Ricardo. To Wicksells mathematical mind the quantity theory of money, as presented by Ricardo, made a much stronger appeal than the vague generalisations of the current bank ing discussions, which side-stepped the question Why do prices rise or fall that Wicksell at an early stage came to regard as the main problem of monetary theory...
Author: William Stanley Jevons
Publisher:
ISBN:
Category : Exchange
Languages : en
Pages : 372
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Book Description
Author: Geoffrey Wood
Publisher: Edward Elgar Pub
ISBN: 9781847206732
Category : Business & Economics
Languages : en
Pages : 125
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Book Description
This book sets out, in straightforward, accessible terms, crucial aspects of monetary economics. It opens with an exposition of the fundamental question of what money is and what it does. the distinguished list of contributors then examines the key role of price stability and how to achieve it.
Author: Milton Friedman
Publisher: University of Chicago Press
ISBN: 0226264254
Category : Business & Economics
Languages : en
Pages : 697
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Book Description
The special task of this book is to present a statistical and theoretical analysis of the relation between the quantity of money and other key economic magnitudes over periods longer than those dominated by cyclical fluctuations-hence the term trends in the title. This book is not restricted to the United States but includes comparable data for the United Kingdom.
