Collected Papers on Monetary Theory

by Lucas, Robert E., Jr.; Gillman, Max

• ISBN13: 9780674066878
• ISBN10: 0674066871
• Format: Hardcover
• Copyright: 2013-01-07
• Publisher: Harvard Univ Pr

Summary

Robert Lucas is one of the outstanding monetary theorists of the past hundred years. Along with Knut Wicksell, Irving Fisher, John Maynard Keynes, James Tobin, and Milton Friedman (his teacher), Lucas revolutionized our understanding of how money interacts with the real economy of production, consumption, and exchange. Lucas's contributions are both methodological and substantive. Methodologically, he developed dynamic, stochastic, general equilibrium models to analyze economic decision-makers operating through time in a complex, probabilistic environment. Substantively, he incorporated the quantity theory of money into these models and derived its implications for money growth, inflation, and interest rates in the long run. He also showed the different effects of anticipated and unanticipated changes in the stock of money on economic fluctuations, and helped to demonstrate that there was not a long-run trade-off between unemployment and inflation (the Phillips curve) that policy-makers could exploit. The twenty-one papers collected in this volume fall primarily into three categories: core monetary theory and public finance, asset pricing, and the real effects of monetary instability. Published between 1972 and 2007, they will inspire students and researchers who want to study the work of a master of economic modeling and to advance economics as a pure and applied science.

Table of Contents

Preface	p. ix
Introduction	p. xvii
Expectations and the Neutrality of Money: Journal of Economic Theory	p. 1
Asset Prices in an Exchange Economy: Econometrica	p. 25
Equilibrium in a Pure Currency Economy: Economic Inquiry	p. 45
Two Illustrations of the Quantity Theory of Money: American Economic Review	p. 65
Discussion of Stanley Fischer, "Towards an Understanding of the Costs of Inflation: II": Carnegie-Rochester Conference Series on Public Policy	p. 81
Interest Rates and Currency Prices in a Two-Country World: Journal of Monetary Economics	p. 90
Optimal Fiscal and Monetary Policy in an Economy without Capital (with Nancy L. Stokey): Journal of Monetary Economics	p. 118
Money in a Theory of Finance: Carnegie-Rochester Conference Series on Public Policy	p. 161
Principles of Fiscal and Monetary Policy: Journal of Monetary Economics	p. 193
Money and Interest in a Cash-in-Advance Economy (with Nancy L. Stokey): Econometrica	p. 214
Addendum: Money and Interest in a Cash-in-Advance
Economy: A Reply (with Nancy L. Stokey) Econometrica
Money Demand in the United States: A Quantitative Review: Carnegie-Rochester Conference Series on Public Policy	p. 246
The Effects of Monetary Shocks When Prices Are Set in Advance: Unpublished manuscript	p. 272
Liquidity and Interest Rates: Journal of Economic Theory	p. 300
Supply-Side Economics: An Analytical Review: Oxford Economic Papers	p. 331
Review of Milton Friedman and Anna J. Schwartz, A Monetary History of the United States, 1867-1960: Journal of Monetary Economics	p. 361
Nobel Lecture: Monetary Neutrality: Journal of Political Economy	p. 375
Inflation and Welfare: Econometrica	p. 400
Interest Rates and Inflation (with Fernando Alvarez and Warren Weber): American Economic Review	p. 433
Macroeconomic Priorities: American Economic Review	p. 445
Menu Costs and Phillips Curves (with Mikhail Golosov): Journal of Political Economy	p. 469
Occasional Pieces: The Death of Keynesian Economics	p. 500
Issues and Ideas
Keynote Address to the 2003 HOPE Conference: My Keynesian Education
History of Political Economy
Review of Robert Skidelsky, John Maynard Keynes, Volumes 1 and 2
Journal of Modern History
Panel Discussion: Is Science Replacing Art?
Monetary Policy: A Journey from Theory to Practice
Index	p. 527
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