Keywords:
Monetary policy.
;
Electronic books.
Description / Table of Contents:
A comprehensive overview of advanced monetary economics, integrating the presentation of monetary theory with its heritage, empirical formulations and empirical tests.
Type of Medium:
Online Resource
Pages:
1 online resource (785 pages)
Edition:
1st ed.
ISBN:
9781134638086
URL:
https://ebookcentral.proquest.com/lib/geomar/detail.action?docID=178648
DDC:
333.72
Language:
English
Note:
Cover -- Half Title -- Dedication -- Title Page -- Copyright Page -- Table of Contents -- Preface -- Acknowledgments -- part one Introduction and Heritage -- 1 Introduction -- Key concepts introduced in this chapter -- 1.1 What is money and what does it do? -- 1.2 Money supply and money stock -- 1.3 The nominal versus the real value of the money supply -- 1.4 The money market in monetary and macroeconomics -- 1.5 A brief history of the definition of money -- 1.6 The practical definitions of money and related concepts -- 1.7 Financial intermediaries and the creation of financial assets -- 1.8 Different modes of analysing the economy -- 1.9 The classical paradigm and the classical set of macroeconomic models -- 1.10 The Keynesian paradigm and the Keynesian set of macroeconomic models -- 1.11 Which macro-paradigm or model must one believe in? -- 1.12 The parameters of the IS-LM expositions of macroeconomic models -- 1.13 Monetary and fiscal policies -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- 2 The analysis of money and prices: the heritage -- Key concepts introduced in this chapter -- 2.1 The quantity equation -- 2.2 The quantity theory -- 2.3 Wicksell's pure credit economy -- 2.4 Keynes' contributions on the demand for money -- 2.5 Friedman and the 'restatement' of the quantity theory of money -- 2.6 The transmission mechanisms for the impact of money supply changes on national income -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- part two Money in the Economy -- 3 Money in the economy: general equilibrium analysis -- Key concepts introduced in this chapter -- 3.1 Money and other goods in the economy -- 3.2 Inserting money into the individual's utility function -- 3.3 The different concepts of prices -- 3.4 The user cost of money.
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3.5 The individual's demand for and supply of money and other goods -- 3.6 The firm's demand and supply functions for money and other goods -- 3.7 The aggregate demand and supply functions for money and other goods in the economy -- 3.8 The supply of nominal and real balances -- 3.9 General equilibrium in the economy -- 3.10 The neutrality and super-neutrality of money -- 3.11 The dichotomy between the real and the monetary sectors -- 3.12 Simplifying the aggregate demand function for money for macroeconomic analysis -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- part three The Demand for Money -- 4 The transactions demand for money -- Key concepts introduced in this chapter -- 4.1 The basic inventory analysis of the transactions demand for money -- 4.2 Some special cases of the demand for transactions balances -- 4.3 The demand for currency versus demand deposits -- 4.4 Economies of scale and the distribution of income -- 4.5 Efficient funds management in a firm with multiple branches -- 4.6 The demand for money and the payment of interest on demand deposits -- 4.7 Technical innovations and the demand for currency, and for demand and savings deposits -- 4.8 Demand deposits versus savings deposits -- 4.9 Impending financial innovations -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- 5 Portfolio selection and the speculative demand for money -- Key concepts introduced in this chapter -- 5.1 Probabilities, means and variances -- 5.2 Wealth maximization versus expected utility maximization -- 5.3 Risk preference, indifference and aversion -- 5.4 The expected utility hypothesis of portfolio selection -- 5.5 The efficient opportunity locus -- 5.6 Tobin's analysis of the demand for a riskless asset versus a risky one.
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5.7 The expected utility hypothesis (EUH) and specific forms of the utility function -- 5.8 The volatility of money demand functions -- 5.9 An important caution: is there a positive demand for speculative balances in the modern economy? -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- 6 The precautionary and buffer stock demand for money -- Key concepts introduced in this chapter -- 6.1 An extension of the transactions demand model to precautionary demand -- 6.2 The precautionary demand for money with overdrafts -- 6.3 The precautionary demand for money without overdrafts -- 6.4 Buffer stock models -- 6.5 Buffer stock rule models -- 6.6 Buffer stock smoothing or objective models -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- 7 The estimating function for the demand for money -- Key concepts introduced in this chapter -- 7.1 Permanent or expected income in the money demand function -- 7.2 Rational expectations -- 7.3 Adaptive expectations (geometric distributed lag) for the derivation of permanent income -- 7.4 Regressive and extrapolative expectations -- 7.5 Lags in adjustment and the costs of changing money balances -- 7.6 Money demand with the first-order PAM -- 7.7 Money demand with the first-order PAM and adaptive expectations of permanent income -- 7.8 The general autoregressive distributed lag model -- 7.9 Caveat emptor: an introduction to common econometric lapses in the estimation of money demand -- 7.10 The functional form of the money demand function -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- 8 Monetary aggregation -- Key concepts introduced in this chapter -- 8.1 The appropriate definition of money: theoretical considerations -- 8.2 Money as the explanatory variable for nominal national income.
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8.3 Weak separability -- 8.4 Simple sum monetary aggregates -- 8.5 The variable elasticity of substitution and near-monies -- 8.6 The user cost of assets -- 8.7 Index number theory and Divisia aggregates -- 8.8 Judging among the monetary aggregates -- Conclusions -- Appendix: Divisia aggregation -- Summary of critical conclusions -- Review and discussion questions -- 9 The demand function for money: empirical findings -- Key concepts introduced in this chapter -- 9.1 Income and/or wealth as the determinant of money demand -- 9.2 The relevant interest rate in the money demand function -- 9.3 The liquidity trap -- 9.4 Money demand and the expected rate of inflation -- 9.5 Shifts of the money demand function -- 9.6 Changes in the exchange rate and currency substitution in the money demand function -- 9.7 A brief historical review of the estimation of money demand -- 9.8 The basics of unit roots, cointegration and error-correction techniques -- 9.9 Some cointegration studies of the money demand function -- 9.10 Empirical studies on the buffer stock models of the demand for money -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- part four Money Supply and Central Banking -- 10 The money supply process -- Key concepts introduced in this chapter -- 10.1 The supply of the monetary base by the central bank -- 10.2 The demand for currency by the public -- 10.3 Commercial banks: the demand for reserves -- 10.4 Mechanical theories of the money supply: money supply identities -- 10.5 A behavioural theory of the money supply -- 10.6 The general money supply function and its empirical estimates -- 10.7 Interest rate elasticities of the money supply -- 10.8 Cointegration and error-correction models of the money supply -- Conclusions -- Summary of critical conclusions -- Review and discussion questions.
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11 The central bank: goals, tools and guides for monetary policy -- key concepts introduced in this chapter -- 11.1 The historic goals of central banks -- 11.2 The evolution of the goals of central banks -- 11.3 Levels of objectives -- 11.4 The tools or instruments of monetary policy -- 11.5 The competitive supply of money and efficiency and competition in the financial sector -- 11.6 Aidministered interest rates and economic performance -- 11.7 The regulation of banks relative to other financial intermediaries -- 11.8 The Federal Reserve System: objectives, instruments and guides to monetary policy -- 11.9 The objectives, instruments and guides to monetary policy of the British monetary authorities -- 11.10 The Bank of Canada: objectives, instruments and guides to monetary policy -- 11.11 The European System of Central Banks (ESCB) and the European Central Bank (ECB) -- 11.12 Currency boards -- Conclusions -- Summary of critical conclusions -- Review and discussion questions -- 12 The central bank: targets, conflicts, independence and the time consistency of policies -- Key concepts introduced in this chapter -- 12.1 Guides to monetary policy -- 12.2 The relationship among goals, targets and guides to policy, and difficulties in the pursuit of monetary policy -- 12.3 The targets of monetary policy -- 12.4 Monetary and reserve aggregates as targets -- 12.5 Interest rates as targets -- 12.6 The price level or the rate of inflation as a target -- 12.7 Nominal national income as a target -- 12.8 Targeting the deviation of output from full employment -- 12.9 Choosing among multiple goals -- 12.10 The conflicts among policy makers: theoretical analysis -- 12.11 The conflicts among policy makers: empirical illustrations -- 12.12 The independence of the central bank -- 12.13 Time-consistent policies versus discretionary ones, and policy rules.
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12.14 The credibility of monetary policy.
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