
Modeling Monetary Economies
Cambridge University Press
Edition: 4, 5/9/2016
EAN 9781316508671, ISBN10: 1316508676
Paperback, 406 pages, 25.4 x 17.8 x 2.3 cm
Language: English
Too often monetary economics has been taught as a collection of facts about institutions for students to memorize. By teaching from first principles instead, this advanced undergraduate textbook builds on a simple, clear monetary model and applies this framework consistently to a wide variety of monetary questions. Starting with the case in which trade is mutually beneficial, the book demonstrates that money makes people better off, and that government money competes against other means of payments, including other types of government money. After developing each of these topics, the book tackles the issue of money competing against other stores of value, examining issues associated with trade, finance, and modern banking. The book then moves from simple economies to modern economies, addressing the role banks play in making more trades possible, concluding with the information problems plaguing modern banking, which result in financial crises.
Preface
Part I. Money
1. Trade in a model with no frictions
2. A simple model of money
3. Barter and commodity money
4. Inflation
5. International monetary systems
6. Price surprises
Part II. Banking
7. Capital
8. Liquidity and financial intermediation
9. Central banking and the money supply
10. Money stock fluctuations
11. Fully backed central bank money
12. The payments system
13. Bank risk
14. Liquidity risk and bank panics
Part III. Government Debt
15. Deficits and the national debt
16. Savings and investment
17. The effect of the national debt on capital and savings
18. The temptation of inflation
References
Author index
Subject index.