Essays in the Fundamental Theory of Monetary Economics and Macroeconomics

The following sections are included:

• CONTENTS

• ABOUT THE AUTHOR

• INTRODUCTORY REMARKS

The following sections are included:

• Introduction

• The Idea that Money is “Just Another Commodity”

• What is Money?

• Money as a Social Relation

• Money and “Enterprise”

• Hierarchical Notions of Money

• Monetary Policy and Real Interest Rates

• International Monetary Relations

• Conclusion

• Notes

The following sections are included:

• Introduction

• The Ontology of Money — Its Nature and Functions

• How Does Money Get into the Economy? How is it Created and Destroyed?

• What Determines the Real Rate of Interest on Loans of Money?

• What is the Main Monetary Policy Instrument that Can be Employed by the Central Bank to Determine the Pace of Money and Credit Creation?

• How Do Monetary Changes Affect Other Economic Variables?

• Classical Monetary Economics

• Monetarism

• Keynes

• Wicksell

• Conclusion

• Notes

The following sections are included:

• Introduction

• A “Caricature” Version of the Quantity Theory of Money

• Potential Criticisms of the Quantity Theory

• Responses to Criticism
  • The neutrality of money?
  • The exogeneity of money?
  • The velocity of circulation and money demand

• The Monetarist Adjustment Mechanism

• The Lucas Supply Curve

• Connection with the Phillips Curve

• “Rational” Versus Adaptive Expectations

• A Cash-In-Advance Macro Model

• Global Monetarism

• Conclusion

• Notes

The following sections are included:

• Introduction

• Interest Rates and Inflation

• Bank Loans and the Endogenous Supply of Money

• The Theory of Inflation

• The Real Policy Rate Versus the Real Natural Rate

• Zero Inflation in a Growing Economy?

• Interest Rate Rules in the Late 20th Century

• The “New Consensus Model” (NCM)

• A “Wicksellian” Model with a Representative Agent

• A Simple Theory of Banking and the Relationship between the Central Bank and Commercial Banks

• The Commercial Bank Balance Sheet

• The Optimization Problem for Bankers

• Conclusion

• Notes

The following sections are included:

• Introduction

• The Theory of “Effective Demand” (Keynes, 1936)

• Aggregate Demand and Supply in “Wage Units”

• Imperfect Competition

• Samuelson’s “Keynesian Cross” (1948)

• Cost-Push and Conflict Inflation

• Hicks’s IS/LM Model (1937)

• The Mundell–Fleming Model (1963)

• Conclusion

• Notes

• Appendix

The following sections are included:

• Introduction

• A “Long-Run” Model

• Stability Analysis

• Is the Existence of a Saddle-Point a Problem in Models Involving Both Monetary/Financial Assets and Real Assets?

• Money in Non-Super-Neutral and the Mundell–Tobin Effect Holds

• Interest Rate Determination

• A Long-Run Phillips Curve?

• Endogenous Money

• “Micro-Foundations” and Monetary Super-Neutrality

• Endogenous Time Preference

• Endogenous Time Preference and Endogenous Money

• Conclusion

• Notes

• Appendix Is it Possible to Make the Long-Run “Phillips Curve” (LRPC) Slope the Other Way (from the Mundell–Tobin Prediction)?

• Different Timing Assumptions

The following sections are included:

• Introduction

• The Alternative Monetary Model (AMM)

• A Keynesian Theory of Economic Growth

• An Alternative Theory of Value and Income Distribution

• The Monetary Circuit, Profits, and an “Indirect” Money Demand/Supply Theory of Prices and Inflation

• A “Classical” Theory of Real Wages

• The Transmission Mechanism of Monetary Policy and the Relationship between the Central Bank and Commercial Banks

• The Business Cycle, Inflation, and the Equilibrium Growth Rate in the AMM

• The Potential for Outright Financial and Economic Instability

• The AMM in Inflation/Growth Space

• Some Graphical Applications

• Income Distribution

• Conclusion

• Notes

The following sections are included:

• Introduction

• Aggregate Demand and Economic Growth in the Open Economy

• Money Supply and Demand, the Price Level, and the Inflation Rate in the Open Economy

• A Complete System with Flexible Exchange Rates

• A Continuous-Time Model of the Small Open Economy with Flexible Exchange Rates

• The System under an “Irrevocable” Fixed Exchange Rate Regime

• Stability in the Irrevocable Fixed Exchange Rate Case

• The International System in the Case of a “Fixed but Adjustable” Exchange Rate Regime

• Stability in the Case of “Fixed but Adjustable” Exchange Rates

• Comparative Statics for the Fixed but Adjustable Exchange Rate Regime

• Conclusion

• Notes

The following sections are included:

• BIBLIOGRAPHY

• INDEX