Modeling Monetary Economies

by Bruce Champ , Scott Freeman , Joseph Haslag

• ISBN13: 9780521177009
• ISBN10: 0521177006
• Edition: 3rd
• Format: Paperback
• Copyright: 2011-05-09
• Publisher: Cambridge University Press

Summary

The approach of this text is to teach monetary economics using the classical paradigm of rational agents in a market setting. Too often monetary economics has been taught as a collection of facts about existing institutions for students to memorize. By teaching from first principles instead, the authors aim to instruct students not only in the monetary policies and institutions that exist today in the United States and Canada, but also in what policies and institutions may or should exist tomorrow and elsewhere. The text builds on a simple, clear monetary model and applies this framework consistently to a wide variety of monetary questions. The authors have added in this third edition new material on money as a means of replacing imperfect social record keeping, the role of currency in banking panics, and a description of the policies implemented to deal with the banking crises that began in 2007.

Table of Contents

Preface

Money:

A simple model of money

Barter and commodity money

Inflation

International monetary systems

Price surprises

Banking:

Capital

Liquidity and financial intermediation

Central banking and the money supply

Money stock fluctuations

Fully backed central bank money

The payments system

Bank risk

Liquidity risk and bank panics

Government Debt:

Deficits and the national debt

Savings and investment

The effect of the national debt on capital and savings

The temptation of inflation

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