Monetary Economics

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 Aggregates2 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 Conclusion3 The Demand for Money The Classical Approach The Keynesian Analysis Post-Keynesian Developments The Monetarist Approach The Empirical Evidence4 Financial Intermediaries and the Supply of Money The Nature and Functions of Financial Intermediaries The Supply of Money Non-Bank Financial Intermediaries Notes5 The Classical System and the Neutrality of Money The Classical System The Neutrality Conditions Note6 The Keynesian System Keynesian Economics The Keynesian Model in the Open Economy The Re-Interpretation of Keynes Notes7 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 Note8 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 Causality9 Inflation Market Theories of Inflation Non-Market Theories of Inflation Inflation in an International Context Note10 The Balance of Payments and the Foreign Exchange Rate Monetary and Other Approaches to the Balance of Payments Foreign Exchange Rate Determination11 Monetary Policy: Targets, Indicators, Rules and Discretion The Choice of Targets and Indicators Rules versus Discretion12 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 Note13 Monetary Policy in the UK since the Second World War 1945-59 The 1960s Competition and Credit Control December 1973-9 The Early 1980s AppendixReferencesIndex