			Home About us Contact

Monetary Theory (monetary + theory)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

The Continuing Muddles of Monetary Theory: A Steadfast Refusal to Face Facts

ECONOMICA, Issue 2009
C. A. E. GOODHART
Lionel Robbins was concerned about the methodology of economic science. When he discussed the relationship between theory and ,reality', two of the examples of inappropriate relationships were taken from monetary economics. Such shortcomings continue. Among the worst are: (1) IS/LM: whereby the monetary authorities set the monetary base, and the interest rate is market determined; (2) the monetary base multiplier of bank deposits, and the role of reserve ratios; (3) the current three-equation neoclassical consensus, assuming perfect creditworthiness, and hence no need for banks; (4) the analysis of the evolution of money. [source]

Monetary Theory: Where Do We Stand?

JOURNAL OF MONEY, CREDIT AND BANKING, Issue 8 2008
HARRIS DELLAS
First page of article [source]

Directed Matching and Monetary Exchange

ECONOMETRICA, Issue 3 2003
Dean Corbae
We develop a model of monetary exchange where, as in the random matching literature, agents trade bilaterally and not through centralized markets. Rather than assuming they match exogenously and at random, however, we determine who meets whom as part of the equilibrium. We show how to formalize this process of directed matching in dynamic models with double coincidence problems, and present several examples and applications that illustrate how the approach can be used in monetary theory. Some of our results are similar to those in the random matching literature; others differ significantly. [source]

Is Kaldor's Theory of Money Supply Endogeneity Still Relevant?

METROECONOMICA, Issue 1 2001
Giancarlo Bertocco
Contemporary monetary theory is characterized by the predominance of the monetarist thesis. Paradoxically, the widespread acceptance of the monetarists' conclusions has coincided with the disappearance of the stable relation between money stock and nominal income from the 1980s onwards. These results did not call the monetarist theory into question, but instead stimulated the elaboration of various proposals for the modification of the monetary authorities' operative schemes. Each of these proposals gives rise to some perplexity. These anomalies provide the justification for this paper, which sets out to analyse the characteristics of the money supply endogeneity theory, a theoretical approach initiated in the 1970s thanks to Kaldor's seminal contribution, with the objective of demonstrating the inconsistencies in the monetarists' conclusions. It is intended to show that the debate on the endogeneity theory developed by the post-Keynesians has overlooked an essential aspect of Kaldor's theory, the examination of which permits: (a) the elaboration of an important criticism of monetarism; and (b) the development of a theory of credit and of financial intermediaries that highlights elements of Keynes's theory that have been neglected by the traditional interpretation. [source]