Controversies in Monetary Economics: Ideas, Issues and Policy.

Abstract

Part 1 Some introductory remarks on and economic theory and policy: Keynes's concept of Monetary Production the lessons of history the influence of monetarism some important themes in monetary economics plan of the book. Part 2 The nature and functions of - a re-examination: the implicit mainstream view the new monetary economics a return to gold? and credit the choice of the monetary standard. Part 3 Monetarism and the quantity theory of money: the quantity theory of Friedman's restatement and the monetary theory of nominal income Friedman's policy proposals monetarism and the New Classical school monetarism and free banking endogenous money. Part 4 The real bills doctrine, interest rate pegging and endogenous money: credit and commodity the Real Bills doctrine interest rates and inflation the post theory of endogenous money. Part 5 How do central banks get their power?: central banks and government public goods and natural monopolies centralizing tendencies in monetary systems potential empirical evidence. Part 6 Money, interest rates and output: nominal rigidities and short-run monetary non-neutrality the natural rate of interest alternative theories of interest. Part 7 The international economy and alternative exchange rate regimes: financial networks and national economies the Hegemonic system fixed and floating exchange rates and currency unions implications of alternative exchange rate regimes the political dimension the monetarist connection what would be a Keynesian approach to currency and exchange rate issues? exchange rate policy and cheap money optimal currency areas? experience with existing floating rate regimes are fixed exchange rates necessary for free trade? exchange rates and capital mobility. Part 8 The costs of inflation: the trade-off between inflation and unemployment the suggested costs of inflation inflation and the monetary system of production the costs of a perfectly anticipated inflation when pays to interest the menu costs of inflation distributional issues indexation alternative inflation norms. (Part contents).