Monetary Economics

The authors' research collaboration has seen the development of a unique approach to the analysis of the role of money and of fluctuations in principle aggregates of the economy. This volume brings together some of the most important results of this joint programme. Beginning with money supply theory, its integration into the theory of asset markets, and the role of credit markets and intermediaries, the authors extend their analysis to the demand for money and interactions between asset markets and the real sector to complete a stock-flow model for a static, closed economy with money, bonds and capital. They then move on to construct a dynamic model in order to understand the role of permanent and transitory monetary shocks. Underlying all of the authors' writing is a clear conception of economics as a policy science, and always they are committed to demonstrating the key policy implications of their work. The volume ends with papers on the uses of money, fiscal policy, and the impact of fixed and fluctuating exchange rates.