The Theory of Money and Financial Institutions

by Shubik, Martin

• ISBN13: 9780262013208
• ISBN10: 0262013207
• Format: Hardcover
• Copyright: 2011-01-21
• Publisher: Mit Pr

Summary

This is the third and last volume of Martin Shubik's exposition of his vision of "mathematical institutional economics"-a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using strategic market games and other game-theoretic methods. There is as yet no general dynamic counterpart to the elegant and mathematically well-developed static theory of general equilibrium. Shubik's paradigm serves as an intermediate step between general equilibrium and full dynamics. General equilibrium provides valuable insights on relationships in a closed friction-free economic structure. Shubik aims to open up this limited structure to the rich environment of sociopolitical economy without dispensing with conceptual continuity. Volume 1 of this work deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multiperiod finite and infinite horizon economies. Volume 3 considers the specific roles of financial institutions and government, aiming to provide the link between the abstract study of invariant economic and financial functions and the ever-changing institutions that provide these functions. The concept of minimal financial institution is stressed as a means to connect function with form in a parsimonious manner.

Table of Contents

Preface	p. ix
Production, Exchange, Money, and Interest
Exchange and Control	p. 3
Production, Exchange, and Markets	p. 33
Multiperiod Production and Exchange	p. 69
Growth and Investment, the Real and Money Rates of Interest	p. 97
Financial Institutions
A Prelude to Institutions	p. 135
Markets, Clearing Arrangements, and Intermediation	p. 169
Corporations, Partnerships, and Proprietorship	p. 193
Commercial Banking and Credit	p. 211
Central Banking and the Money Supply	p. 255
Stock Markets and Exchanges	p. 293
Insurance and Other Financial Institutions	p. 331
Corporate Control and Fiduciaries	p. 353
Society and Political Economy
Population and Labor	p. 385
Multigenerational Economics	p. 407
Public Goods and Public Policy	p. 423
Taxes, War, History, and National Debt	p. 447
Government and Central Banking: Monetary and Fiscal Policy	p. 471
A Critique of Macroeconomics: Policy and/or Theory	p. 499
Mathematical Institutional Economics
Solutions to Games in Extensive Form, Rationality, and Experimental Gaming	p. 531
Money: A Cooperative Market Game Approach	p. 567
Money and Financial Institutions: Invariant Function and Changing Form: A Reprise	p. 595
References	p. 627
Name Index	p. 655
Subject Index	p. 663
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