CONTROVERSIES IN MONETARY ECONOMICS: Ideas, Issues and Policy

by John Smithin

Overview

In contrast to the so-called 'real' theories of business cycles and growth prevalent in contemporary economics, many important figures in the history of economic thought instinctively focused on monetary factors in explaining macroeconomic behaviour.

Controversies in Monetary Economics combines an explanation of past monetary controversies with practical proposals for the conduct of monetary policy in the contemporary global economy. Several alternative approaches to monetary economics are discussed, ranging from the traditional quantity theory to post Keynesian theories of endogenous money.

The key question which emerges is whether or not the mythical 'natural rate' of interest is a meaningful concept. If so, this justifies the conventional view that central bank policy is relevant only for price level determination and does not permanently affect the real economy. However, if the interest rate is itself a 'monetary' phenomenon, as Keynes and others tried to argue, then central bank interest rate policy cannot be neutral and is an important determinant of economic prosperity.

The book will be essential reading for economists with an interest in monetary economics and the history of economic thought.

Product Details

ISBN-13:	9781852783990
Publisher:	Edward Elgar Publishing
Publication date:	03/01/1994
Pages:	224
Product dimensions:	6.12(w) x 9.25(h) x (d)

About the Author

John Smithin, Professor of Economics, Department of Economics and the Schulich School of Business, York University, Toronto, Canada

Editorial Reviews

'. . . this is an excellent work by Smithin in the field of monetary economics which not only discusses the controversies in monetary theories but also explains practical proposals for the conduct of monetary policy. This book will be very much useful for academic specialists in monetary economics and macroeconomics, historians of economic thought and practitioners in central banks, international institutions and finance ministries.'

Sadananda Prusty

'. . . the author must be commended for the breadth of coverage, for the reasoned and fair analysis, and for attempts to synthesize and extend previous work in this area. In particular, the model he has presented should provide the basis for further attempts to develop a coherent approach to monetary theory and policy.'

L. Randall Wray