The Theory of Money and Financial Institutions, Volume 2 / Edition 1

Hardcover (Print)
Buy New
Buy New from
Used and New from Other Sellers
Used and New from Other Sellers
from $6.47
Usually ships in 1-2 business days
(Save 89%)
Other sellers (Hardcover)
  • All (8) from $6.47   
  • New (1) from $65.00   
  • Used (7) from $6.47   


In this major work Martin Shubik offers his vision of mathematical institutional economics, a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics that goes beyond general equilibrium theory.

Using an approach that is neither Keynesian nor monetarist, Volume 1 describes the role of money and financial institutions in binding the economy to the polity and society, Volume 2 will extend the analysis to specific financial institutions and to government, while a separate volume, coauthored with Pradeep Dubey and John Geanakoplos, will develop the mathematical aspects of the theory of strategic market games.

This work develops a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomic theory using, as its prime methodological tool, the theory of games in strategic and extensive form. Shubik's approach to economic dynamics involves the search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the structure or "rules of the game" that define and give shape to economic life. In this approach money and financial institutions are revealed as means for transmitting the imperatives of sociopolitical purpose to the economy. The book stresses formal model building, but the level of the methematics used is relatively elementary.

Read More Show Less

Product Details

Meet the Author

Martin Shubik is Seymour Knox Professor of Mathematical Institutional Economics (Emeritus) at
Yale University's Cowles Foundation and School of Management.
Read More Show Less

Table of Contents

I Multiperiod Exchange 1
1 Multiperiod Trade with Commodity Money and Nondurable Goods 3
2 Multiperiod Trade with Commodity Money and Durable Goods 29
3 Multiperiod Trade with Commodity Money and Credit 59
4 Multiperiod Trade with Fiat Money and Credit 77
II Trade and the Infinite Horizon 111
5 Multiperiod Trade: Transactions and the Float 113
6 Capital Stock, Salvage Values, and Expectations 143
7 Expectations, Uncertainty, Information, and Finance 175
8 Money, Credit, and Incomplete Markets 189
9 Multiperiod Trade with Money, Credit, Assets, and Overlapping Generations 229
III Money and Institutions 271
10 Transactions Technology and Costs 273
11 Brokers, Dealers, and Setup Costs 291
12 Money, Institutions, and Political Economy 313
References 351
Name Index 361
Subject Index 365
Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)