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The Foundations Of Monetary Economics

Edited by David Laidler, formerly Bank of Montreal Professor Emeritus, University of Western Ontario and former Fellow in Residence, C.D. Howe Institute, Toronto, Canada
The Foundations of Monetary Economics presents an authoritative collection of key articles on monetary economics – one of the most contentious areas of economics. David Laidler – who has himself made important contributions – has selected those articles which are essential to an understanding of the origin and developement of monetary economics.
Extent: 1,768 pp
Hardback Price: £497.00 Online: £447.30
Publication Date: 1999
ISBN: 978 1 85898 997 6
Availability: In Stock

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  • Economics and Finance
  • Economic Psychology
  • Financial Economics and Regulation
  • History of Economic Thought
The Foundations of Monetary Economics presents an authoritative collection of key articles on monetary economics – one of the most contentious areas of economics. David Laidler – who has himself made important contributions – has selected those articles which are essential to an understanding of the origin and development of monetary economics.

This important three-volume collection includes classic papers from the late 19th and early 20th centuries but places the emphasis on those papers written in the last half century. Particular weight is given to work that pays explicit attention to money’s role in processes of exchange.

Topics include the origins of money; cash in advance; overlapping generations and legal restrictions; theories of the demand for money; empirical studies of the demand for money; money, prices and output; money in general equilibrium and disequilibrium; money and clearing markets; credit market effects; monetary explanations of the cycle; money and the Great Depression; money and growth; monetary policy and the price level; rational expectations and monetary policy; central banking; free banking and the new monetary economics.
‘This three-volume set can be strongly recommended, because it will be an authoritative source for all those interested in political economy, monetary policy and the history of monetary thought, who will also benefit from not having to search for many until now dispersed articles, which are not readily accessible in every library.’
– Sergio Rossi, Kyklos
81 articles, dating from 1888 to 1996
Contributors include: R. Barro, R. Clower, I. Fisher, M. Friedman, P. Howitt, A. Leijonhufvud, R.E. Lucas Jr., A. Marshall, K. Menger, J. Tobin

Acknowledgements • Introduction

Volume I:

Part I: The Origins of Money
1. Karl Menger (sic) (1892), ‘On the Origin of Money’
2. Karl Brunner and Allan H. Meltzer (1971), ‘The Uses of Money: Money in the Theory of an Exchange Economy’
3. Joseph M. Ostroy (1973), ‘The Informational Efficiency of Monetary Exchange’
4. Robert A. Jones (1976), ‘The Origin and Development of Media of Exchange’
5. Armen A. Alchian (1977), ‘Why Money?’
6. Nobuhiro Kiyotaki and Randall Wright (1989), ‘On Money as a Medium of Exchange’
7. Toni Gravelle (1996), ‘What is Old is New Again’
Part II: Cash in Advance
8. Robert Clower (1967), ‘A Reconsideration of the Microfoundations of Monetary Theory’
9. Meir Kohn (1981), ‘In Defense of the Finance Constraint’
Part III: Overlapping Generations and Legal Restrictions
10. Paul A. Samuelson (1958), ‘An Exact Consumption-Loan Model of Interest With or Without the Social Contrivance of Money’
11. Bennett T. McCallum (1983), ‘The Role of Overlapping-Generations Models in Monetary Economics’
12. Neil Wallace (1988), ‘A Suggestion for Oversimplifying the Theory of Money’
Part IV: Theories of the Damand for Money
13. F.Y. Edgeworth, Esq., M.A. (1888), ‘The Mathematical Theory of Banking’
14. A.C. Pigou (1917), ‘The Value of Money’
15. S.P. Chambers (1934-1935), ‘Fluctuations in Capital and the Demand for Money’
16. J.R. Hicks (1935), ‘A Suggestion for Simplifying the Theory of Money’
17. J.C. Gilbert (1953), ‘The Demand for Money: The Development of an Economic Concept’
18. Milton Friedman (1956), ‘The Quantity Theory of Money-A Restatement’
19. William J. Baumol (1952), ‘The Transactions Demand for Cash: An Inventory Theoretic Approach’
20. J. Tobin (1958), ‘Liquidity Preference as Behavior Towards Risk’
21. Merton H. Miller and Daniel Orr (1966), ‘A Model of the Demand for Money by Firms’
22. Maurice D. Weinrobe (1972), ‘A Simple Model of the Precautionary Demand for Money’
23. M.R. Gray and J.M. Parkin (1973), ‘Portfolio Diversification as Optimal Precautionary Behaviour’
24. Lars E.O. Svensson (1985), ‘Money and Asset Prices in a Cash-in-Advance Economy’
Part V: Empirical Studies of the Demand for Money
25. A.J. Brown (1939), ‘Interest, Prices, and the Demand Schedule for Idle Money’
26. Allan H. Meltzer (1963), ‘The Demand for Money: The Evidence from the Time Series’
27. Edgar L. Feige (1967), ‘Expectations and Adjustments in the Monetary Sector’
28. Michael D. Bordo and Lars Jonung (1990), ‘The Long-Run Behavior of Velocity: The Institutional Approach Revisited’
29. William A. Barnett, Douglas Fisher and Apostolos Serletis (1992), ‘Consumer Theory and the Demand for Money’
Name Index

Volume II:

Part I: Money, Prices and Output
1. Knut Wicksell (1907), ‘The Influence of the Rate of Interest on Prices’
2. R.F. Harrod (1937), ‘Mr. Keynes and Traditional Theory’
3. J.R. Hicks (1937), ‘Mr Keynes and the “Classics”: A Suggested Interpretation’
4. Franco Modigliani (1944), ‘Liquidity Preference and the Theory of Interest and Money’
5. Don Patinkin (1952), ‘Price Flexibility and Full Employment’
Part II: Money in General Equilibrium and Disequilibrium
6. G.C. Archibald and R.G. Lipsey (1958), ‘Monetary and Value Theory: A Critique of Lange and Patinkin’
7. James Tobin (1969), ‘A General Equilibrium Approach To Monetary Theory’
8. Robert J. Barro and Herschel I. Grossman (1971), ‘A General Disequilibrium Model of Income and Employment’
9. P.W. Howitt (1974), ‘Stability and the Quantity Theory’
10. Axel Leijonhufvud (1973), ‘Effective Demand Failures’
11. Peter D. Jonson (1976), ‘Money, Prices and Output: An Integrative Essay’
Part III: Money and Clearing Markets
12. Robert E. Lucas, Jr. (1972), ‘Expectations and the Neutrality of Money’
13. Timothy D. Lane (1990), ‘Costly Portfolio Adjustment and the Short-Run Demand for Money’
Part IV: Credit Market Effects
14. Joseph E. Stiglitz and Andrew Weiss (1981), ‘Credit Rationing in Markets with Imperfect Information’
15. Ben S. Bernanke and Alan S. Blinder (1988), ‘Credit, Money, and Aggregate Demand’
Part V: Monetary Explanations of the Cycle
16. Irving Fisher (1923), ‘The Business Cycle Largely A “Dance of the Dollar”’
17. D.H. Robertson (1928), ‘Theories of Banking Policy’
18. R.G. Hawtrey (1929), ‘The Monetary Theory of the Trade Cycle’
19. Friedrich A. Von Hayek (1939), ‘Price Expectations, Monetary Disturbances and Malinvestments’
20. Clark Warburton (1952), ‘The Misplaced Emphasis in Contemporary Business-Fluctuation Theory’
21. Milton Friedman and Anna J. Schwartz (1963), ‘Money and Business Cycles’
22. Robert E. Lucas, Jr. (1977), ‘Understanding Business Cycles’
23. Leland B. Yeager (1986), ‘The Significance of Monetary Disequilibrium’
Part VI: Money and the Great Depression
24. Irving Fisher (1933), ‘The Debt-Deflation Theory of Great Depressions’
25. Lauchlin Currie (1934), ‘The Failure of Monetary Policy to Prevent the Depression of 1929-32’
26. Ben S. Bernanke (1983), ‘Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression’
Name Index

Volume III:

Part I: Money and Growth
1. James Tobin (1965), ‘Money and Economic Growth’
2. Miguel Sidrauski (1967), ‘Rational Choice and Patterns of Growth in a Monetary Economy’
3. Joel Fried (1973), ‘Money, Exchange and Growth’
Part II: Money and Welfare
4. Martin J. Bailey (1956), ‘The Welfare Cost of Inflationary Finance’
5. Harry G. Johnson (1969), ‘Inside Money, Outside Money, Income, Wealth, and Welfare In Monetary Theory’
6. A. Leijonhufvud (1977), ‘Costs and Consequences of Inflation’
7. Dwight Jaffee and Ephraim Kleiman (1977), ‘The Welfare Implications of Uneven Inflation’
Part III: Monetary Policy and the Price Level
8. Alfred Marshall (1925), ‘Remedies for Fluctuations in General Prices (1887)’
9. Irving Fisher (1913), ‘A Remedy for the Rising Cost of Living: Standardizing the Dollar’
10. Henry C. Simons (1936), ‘Rules Versus Authorities in Monetary Policy’
11. Milton Friedman (1968), ‘The Role of Monetary Policy’
Part IV: Rational Expectations and Monetary Policy
12. Thomas J. Sargent and Neil Wallace (1976), ‘Rational Expectations and the Theory of Economic Policy’
13. Edmund S. Phelps and John B. Taylor (1977), ‘Stabilizing Powers of Monetary Policy under Rational Expectations’
14. Stanley Fischer (1977), ‘Long-Term Contracts, Rational Expectations and the Optimal Money Supply Rule’
15. Peter Howitt (1981), ‘Activist Monetary Policy under Rational Expectations’
Part V: Central Banking
16. Michael Parkin and Robin Bade (1977), ‘Central-Bank Laws and Monetary Policies: A Preliminary Investigation’
17. Thomas J. Sargent and Neil Wallace (1981), ‘Some Unpleasant Monetarist Arithmetic’
18. Robert J. Barro and David B. Gordon (1983), ‘A Positive Theory of Monetary Policy in a Natural Rate Model’
19. Robert J. Barro (1986), ‘Recent Developments in the Theory of Rules Versus Discretion’
20. Carl E. Walsh (1995), ‘Optimal Contracts for Central Bankers’
21. Bennett T. McCallum (1995), ‘Two Fallacies Concerning Central-Bank Independence’
22. Stanley Fischer (1994), ‘Modern Central Banking’
Part VI: Free Banking and the New Monetary Economics
23. Benjamin Klein (1974), ‘The Competitive Supply of Money’
24. Eugene F. Fama (1980), ‘Banking in the Theory of Finance’
25. Kevin D. Hoover (1988), ‘Money, Prices and Finance in the New Monetary Economics’
26. George A. Selgin and Lawrence H. White (1994), ‘How Would the Invisible Hand Handle Money?’
Name Index