Money, Banking, and the Business Cycle Volume II: Remedies and Alternative Theories

by Simpson, Brian P.

• ISBN13: 9781137340771
• ISBN10: 1137340770
• Format: Hardcover
• Copyright: 2014-07-02
• Publisher: Palgrave Macmillan

Summary

The business cycle is a complex phenomenon. On the surface, it involves a multitude of mechanisms, such as oscillations in interest rates, prices, wages, unemployment, output, and spending. But a deeper understanding requires a unifying theory to make these various parts whole. Money, Banking, and the Business Cycle provides a comprehensive framework for analyzing these mechanisms, and offers a robust prescription for reducing financial instability over the long-term. Volume II refutes Keynesian and real business cycle theories and provides policy prescriptions to virtually eliminate the cycle. Simpson offers a detailed analysis of several historical monetary systems around the world and shows the causes and effects of fiat money and fractional-reserve banking, as well as a 100-percent reserve gold standard.

Author Biography

Brian P. Simpson is an Associate Professor of Accounting and Finance at National University. His research has been published in numerous peer-reviewed journals, including the Journal of Business and Behavioral Sciences. He is the author of Markets Don't Fail! (2005).

Table of Contents

Introduction
PART I: REFUTATION OF ALTERNATIVE EXPLANATIONS OF THE BUSINESS CYCLE
1. Underconsumption and Overproduction Theories of the Business Cycle
2. Keynesian Business Cycle Theory, Part Deux: Inflexible Prices and Wages
3. Real Business Cycle Theory
PART II: TO CURE THE BUSINESS CYCLE
4. Government Interference, Fiat Money, and Fractional-Reserve Banking
5. The Characteristics and Effects of a Free Market in Money and Banking
6. The Significance of Some of the Historically Freer Banking Periods
7. Gold and 100-Percent Reserves
8. How to Transition to a Free Market in Money and Banking
Epilogue