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The International Monetary System and the Theory of Monetary Systems

Pascal Salin, Honorary Professor, University Paris-Dauphine, France and former President of the Mont Pèlerin Society
The international monetary system, and the disparate systems that make it up, are complex and there are many fallacies surrounding the ways in which they work. This book provides a clear and rigorous understanding of these systems and their possible consequences.
Extent: 272 pp
Hardback Price: $125.00 Web: $112.50
Publication Date: 2016
ISBN: 978 1 78643 029 8
Availability: In Stock
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  • Economics and Finance
  • Austrian Economics
  • Financial Economics and Regulation
  • International Economics
  • Political Economy
Monetary problems are important and widely debated, but the complexity of the international monetary system and the disparate systems that make it up gives rise to many fallacies about the inner workings of these systems. When shared by those who decide economic and monetary policies, these fallacies can have damaging consequences. This book provides a rigorous and approachable analysis of these systems and consequences, providing the keys to untangling and understanding their mechanisms and influence.

A clear understanding of the working of monetary systems becomes an indispensable decision-making tool when it comes to pressing questions about reform and issues of global debate such as whether a country should join (or leave) the Eurozone or attempts to cure the so-called ‘balance of payments problems’. Starting from basic concepts, Pascal Salin progressively builds upon his analysis of monetary systems in a coherent and easily readable way, drawing on the most reliable theoretical contributions from research and giving examples of lessons that can be drawn from this rigorous examination of topics including devaluations, fixed and flexible exchange rates, monetary integration, monetary crises, monetary policy, and more. His clear, orderly style pares down accumulated details and theories to leave a concise and usable toolkit for analysis and action.

This book makes it possible for anyone, starting from scratch, to come to a comprehensive understanding of the working of monetary systems. Students and scholars in economics as well as policy makers and practitioners will find this lucid volume an important resource and reference, as it provides intellectual instruments to evaluate the working of any monetary system.
‘. . . The International Monetary System and the Theory of Monetary Systems is replete with well-grounded arguments and thought-provoking insights. It is thus both a useful and distinctive resource for economics scholars and students, and an intellectually compelling journey into the principles of domestically sound currencies, and into how to build sound international monetary systems..’
– Carmen Elena Dorobăţ, ​Quarterly Journal of Austrian Economics
Contents: PART I BASIC STATEMENTS AND ANALYSES 1. The Concept of Nation 2. The Theory of Exchange 3. Equilibrium and Disequilibrium 4. The Demand for Money 5. Money Creation 6. The Exchange Rate 7. An Overview of Monetary Systems and Exchange Rate Regimes PART II THE BALANCE OF PAYMENTS 8. The Accounting Approach to the Balance of Payments 9. The Economic Approach to the Balance of Payments 10. Lessons from the Analysis of the Balance of Payments PART III INTERNATIONAL MONETARY EQUILIBRIUM IN MODERN MONETARY SYSTEMS 11. Money Creation in Hierarchical Systems 12. Inflation, a Monetary Phenomenon 13. The Formation of International Prices 14. General Principles about the Working of Fixed Exchange Rate Systems and Flexible Exchange Rate Systems 15. The Monetary Approach to the Balance of Payments (Under Fixed Exchange Rates) 16. The Processes of Transmission Between Monetary Systems Under Fixed Exchange Rates 17. International Monetary Equilibrium Under Fixed Exchange Rates 18. The Monetary Approach to Exchange Rate Variations 19. The Devaluation PART IV MONETARY PROBLEMS 20. The Very Long Term Evolution of Monetary Systems 21. The Working of Fixed Rate Systems Without an International Currency 22. Monetary Policy and Monetary Crises 23. Monetary Integration in Europe Conclusion : The Future Of Monetary Systems References Index