Monetary Economics

Monetary Economics

Theories, Evidence and Policy

2nd Edition - January 1, 1985

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  • Authors: David G. Pierce, Peter J. Tysome
  • eBook ISBN: 9781483105857

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Monetary Economics: Theories, Evidence and Policy, Second Edition provides basic introduction to various aspects of monetary economics. The first chapter tackles the functions, advantages, and definitions of money. Chapter 2 deals with the monetary transmission mechanism. Chapter 3 discusses the demand for money, while Chapter 4 talks about the financial intermediaries and the supply of money. The book also covers the classical system and the neutrality of money. The Keynesian system and monetarism are then tackled. The text reviews the empirical evidence relating to the role of money. Other related topics covered are inflation; the balance of payments and the foreign exchange rate; and monetary policy. The book also deals with the techniques of monetary control. The last chapter discusses the U.K. post-WW2 monetary policy. The book will be of great interest to students and professionals involved in the study of monetary economics.

Table of Contents

  • 1 The Functions, Advantages and Definitions of Money

    The Functions of Money

    The Advantages of Having Money: the Monetary Economy

    What is Money? Some Theoretical and Empirical Definitions

    United Kingdom Definitions of Monetary Aggregates

    2 Monetary Transmission Mechanisms and the Channels of Monetary Influence

    The Portfolio Balance Transmission Mechanism

    The Wealth Transmission Mechanism

    The Credit Availability Transmission Mechanism

    The Expectations Transmission Mechanism

    The Open Economy

    Summary and Conclusion

    3 The Demand for Money

    The Classical Approach

    The Keynesian Analysis

    Post-Keynesian Developments

    The Monetarist Approach

    The Empirical Evidence

    4 Financial Intermediaries and the Supply of Money

    The Nature and Functions of Financial Intermediaries

    The Supply of Money

    Non-Bank Financial Intermediaries


    5 The Classical System and the Neutrality of Money

    The Classical System

    The Neutrality Conditions


    6 The Keynesian System

    Keynesian Economics

    The Keynesian Model in the Open Economy

    The Re-Interpretation of Keynes


    7 Monetarism

    The Quantity Theory

    The Transmission Mechanism

    The Inherent Stability of the Private Sector and the Unimportance of Sectoral Detail

    The Role of Macroeconomic Policy

    Monetarists, Fiscal Policy and Crowding-out


    8 A Review of the Empirical Evidence Relating to the Role of Money and the Effectiveness of Monetary Policy

    Time Lags

    Keynes versus the Quantity Theory in Predicting Macrovariables

    Monetary Policy versus Fiscal Policy

    A Question of Causality

    9 Inflation

    Market Theories of Inflation

    Non-Market Theories of Inflation

    Inflation in an International Context


    10 The Balance of Payments and the Foreign Exchange Rate

    Monetary and Other Approaches to the Balance of Payments

    Foreign Exchange Rate Determination

    11 Monetary Policy: Targets, Indicators, Rules and Discretion

    The Choice of Targets and Indicators

    Rules versus Discretion

    12 Techniques of Monetary Control

    Direct Controls over Deposits

    Direct Controls over Supply-Side Counterparts

    Market Controls over Deposits

    Market Controls over Supply-Side Counterparts

    Controlling the PSBR


    13 Monetary Policy in the UK since the Second World War


    The 1960s

    Competition and Credit Control

    December 1973-9

    The Early 1980s




Product details

  • No. of pages: 308
  • Language: English
  • Copyright: © Butterworth-Heinemann 1985
  • Published: January 1, 1985
  • Imprint: Butterworth-Heinemann
  • eBook ISBN: 9781483105857

About the Authors

David G. Pierce

Peter J. Tysome

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