Monetary economics Books

Book SynopsisThe second edition of this important textbook introduces students to the fundamental ideas of heterodox economics. It is written in a clear way by top heterodox scholars. This introductory book offers not only a critique of the dominant approach to economics, but also presents a positive and constructive alternative. Students interested in an explanation of the real world will find the heterodox approach not only satisfying, but ultimately better able to explain a money-using economy prone to periods of instability and crises.Key features of this textbook include: A non-conventional understanding of economic analysis on a number of relevant topics A new analysis of the state of macroeconomics Deep and convincing criticism of orthodox thinking Discussion of the crucial importance of money, banking and finance today New discussions of the theories of consumption and investment Analysis of the roots of the 2008 global financial crisis A presentation of the features of sustainable development. Students of economics at all levels can use this textbook to deepen their understanding of the heterodox approach, the fundamental roots of the 2008 global financial crisis and the need to rethink economics afresh.Trade Review‘This book is a comprehensive textbook of macroeconomics that can be easily regarded as one of the top scholarly contributions made in recent years to introduce readers to the realm of political economy. Contributors include among the best Keynesian economists and historians of economic thought. This book pushes the frontier of knowledge and its reading seems to be a required step for the inquisitive reader.’ -- Andrea Carrera, Review of Political Economy'The challenges of ameliorating enduring inequalities and supporting an inclusive recovery from the Covid-19 crisis necessitate new understandings of macroeconomic dynamics and policy innovations. This invaluable volume brings together some of the world's leading macroeconomists to advance these critical aims at what may turn out to be a turning point in the profession.' -- Ilene Grabel, University of Denver, US, author of When Things Don’t Fall Apart: Global Financial Governance and Developmental Finance in an Age of Productive Incoherence'Now that this excellent heterodox book is into a second edition there are only two choices; read it, or continue to be ''deceived by economists''.' -- John Smithin, York University and Aurora Philosophy Institute/Institut philosophie Aurora, CanadaTable of ContentsContents: Introduction: the urgent need for a heterodox approach to economic analysis 1 Louis-Philippe Rochon and Sergio Rossi PART I ECONOMICS, ECONOMIC ANALYSIS AND ECONOMIC SYSTEMS 1 What is economics? 25 Louis-Philippe Rochon and Sergio Rossi 2 The state of macroeconomics 51 Louis-Philippe Rochon and Sergio Rossi 3 The history of economic theories 80 Heinrich Bortis 4 Monetary economies of production 122 Louis-Philippe Rochon PART II MONEY, BANKS AND FINANCIAL ACTIVITIES 5 Money and banking 151 Marc Lavoie and Mario Seccareccia 6 The financial system 176 Jan Toporowski 7 Central banking and monetary policy 200 Louis-Philippe Rochon and Sergio Rossi PART III THE MACROECONOMICS OF THE SHORT AND LONG RUN 8 Theories of consumption 233 Stavros A. Drakopoulos 9 Theories of investment 268 Thomas Dallery 10 Aggregate demand 307 Jesper Jespersen 11 Inflation and unemployment 331 Alvaro Cencini and Sergio Rossi 12 The role of fiscal policy 355 Malcolm Sawyer 13 Economic growth and development 376 Mark Setterfield 14 Wealth distribution 402 Omar Hamouda PART IV INTERNATIONAL ECONOMY 15 International trade and development 437 Robert A. Blecker 16 Balance-of-payments constrained growth 469 John McCombie and Nat Tharnpanich 17 European monetary union 494 Sergio Rossi PART V RECENT TRENDS 18 Financialization 517 Gerald A. Epstein 19 Imbalances and crises 540 Robert Guttmann 20 Sustainable development 566 Richard P.F. Holt 21 Conclusion: do we need microfoundations for macroeconomics? 593 John King Answers 618 Index 633

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Book SynopsisBanks have a special position in the financial system. Their exclusive link to the central bank puts them at the top of the financial system and enables banks to offer liquidity to the wider economy. They also provide loans and payment services to firms and households. This multifaceted nature of banking makes the economics of banking exciting. This Research Review assembles the best 'banking' papers on all these dimensions and will be invaluable for banking scholars and practitioners.Table of ContentsContents: Introduction Dirk Schoenmaker PART I THEORY OF BANKING 1. Michael A. Klein (1971), ‘A Theory of the Banking Firm’, Journal of Money, Credit and Banking, 3 (2) (Part 9), May, 205–18 2. Douglas W. Diamond and Philip H. Dybvig (1983), ‘Bank Runs, Deposit Insurance and Liquidity’, Journal of Political Economy, 91 (3), June, 401–19 3. Franklin Allen and Douglas Gale (1998), ‘Optimal Financial Crises’, Journal of Finance, 53 (4), August, 1245–84 4. Charles W. Calomiris and Charles M. Kahn (1991), ‘The Role of Demandable Debt in Structuring Optimal Banking Arrangements’, American Economic Review, 81 (3), June, 497–513 5. Douglas W. Diamond (1984), ‘Financial Intermediation and Delegated Monitoring’, Review of Economic Studies, 51 (3), July, 393–414 6. Joseph E. Stiglitz and Andrew Weiss (1981), ‘Credit Rationing in Markets with Imperfect Information’, American Economic Review, 71 (3), June, 393–410 7. Anil K. Kashyap, Raghuram Rajan and Jeremy C. Stein (2002), ‘Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit-Taking’, Journal of Finance, 57 (1), February, 33–73 PART II STRUCTURE AND EFFICIENCY 8. Allen N. Berger and David B. Humphrey (1997), ‘Efficiency of Financial Institutions: International Survey and Directions for Future Research’, European Journal of Operational Research, 98 (2), April, 175–212 9. Arnoud W. A. Boot (2017), ‘The Future of Banking: From Scale & Scope Economies to Fintech’, European Economy – Banks, Regulation and The Real Sector, 2, 77–95 10. Wolf Wagner (2010), ‘Diversification at Financial Institutions and Systemic Crises’, Journal of Financial Intermediation, 19 (3), July, 373–86 11. Franklin Allen and Douglas Gale (2004), ‘Competition and Financial Stability’, Journal of Money, Credit and Banking, 36 (3) (Part 2), June, 453–80 12. Sam Langfield and Marco Pagano (2016), ‘Bank bias in Europe: Effects on Systemic Risk and Growth’, Economic Policy, 31 (85), January, 51–106 PART III BANKING SERVICES 13. Mitchell A. Petersen and Raghuram G. Rajan (1994), ‘The Benefits of Lending Relationships: Evidence from Small Business Data’, Journal of Finance, 49 (1), March, 3–37 14. Allen N. Berger and Gregory F. Udell (2002), ‘Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure’, Economic Journal, 112 (477), February, F32–53 15. Òscar Jordà, Moritz Schularick and Alan M. Taylor (2016), ‘The Great Mortgaging: Housing Finance, Crises and Business Cycles’, Economic Policy, 31 (85), January, 107–52 16. Arnoud W. A. Boot and Lev Ratnovski (2016), ‘Banking and Trading’, Review of Finance, 20 (6), October, 2219–46 17. Charles Goodhart and Dirk Schoenmaker (2016), ‘The Global Investment Banks are now all Becoming American: Does that Matter for Europeans?’, Journal of Financial Regulation, 2 (2), August, 168–81 18. Allen Goss and Gordon S. Roberts (2011), ‘The Impact of Corporate Social Responsibility on the Cost of Bank Loans’, Journal of Banking and Finance, 35 (7), July, 1794–1810 19. Thorsten Beck, Asli Demirgüç-Kunt and Maria Soledad Martinez Peria (2008), ‘Banking Services for Everyone? Barriers to Bank Access and Use around the World’, World Bank Economic Review, 22 (3), November, 397–430 PART IV INTERNATIONAL BANKING 20. Robert Grosse and Lawrence G. Goldberg (1991), ‘Foreign Bank Activity in the United States: An Analysis by Country of Origin’, Journal of Banking and Finance, 15 (6), December, 1093–112 21. Nicola Cetorelli and Linda S. Goldberg (2012), ‘Banking Globalization and Monetary Transmission’, Journal of Finance, 67 (5), October, 1811–43 22. Dirk Schoenmaker (2011), ‘The Financial Trilemma’, Economics Letters, 111, 57–9 23. Stijn Claessens and Neeltje Van Horen (2014), ‘Foreign Banks: Trends and Impact’, Journal of Money, Credit and Banking, 46 (S1), February, 295–326 24. Ralph De Haas and Iman Van Lelyveld (2014), ‘Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm?’, Journal of Money, Credit and Banking, 46 (S1), February, 333–64 25. Eugenio Cerutti, Giovanni Dell’Ariccia and Maria Soledad Martinez Peria (2007), ‘How Banks Go Abroad: Branches or Subsidiaries’, Journal of Banking and Finance, 31 (6), June, 1669–92 26. Eugenio Cerutti and Christina Schmieder (2014), ‘Ring Fencing and Consolidated Banks’ Stress Tests’, Journal of Financial Stability, 11, April, 1–12 27. Dirk Schoenmaker (2015), ‘The New Banking Union Landscape in Europe: Consolidation Ahead?’, Journal of Financial Perspectives, 3 (2), 189–201 PART V BANKING SUPERVISION 28. David Miles, Jing Yang and Gilberto Marcheggiano (2013), ‘Optimal Bank Capital’, Economic Journal, 123 (567), March, 1–37 29. Enrico Perotti and Javier Suarez (2011), ‘A Pigovian Approach to Liquidity Regulation’, International Journal of Central Banking, 7 (4), 3–41 30. Dirk Schoenmaker and Peter Wierts (2015), ‘Regulating The Financial Cycle: An Integrated Approach with a Leverage Ratio’, Economics Letters, 136, November, 70–2 31. Raj Aggarwal and Kevin T. Jacques (2001), ‘The Impact of FDICIA and Prompt Corrective Action on Bank Capital and Risk: Estimates Using a Simultaneous Equations Model’, Journal of Banking and Finance, 25 (6), June, 1139–60 32. Jean-Charles Rochet (2003), ‘Why Are There so Many Banking Crises?’, CESifo Economic Studies, 49 (2), 141–55 PART VI FINANCIAL STABILITY 33. Ben S. Bernanke (1983), ‘Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression’, American Economic Review, 73 (3), June, 257–76 34. C. A. E. Goodhart (1987), ‘Why Do Banks Need a Central Bank?’ Oxford Economic Papers, 39 (1), March, 75–89 35. Tobias Adrian and Hyun Song Shin (2010), ‘Liquidity and Leverage’, Journal of Financial Intermediation, 19 (3), July, 418–37 36. Andrei Shleifer and Robert Vishny (2011), ‘ Fire Sales in Finance and Macroeconomics’, Journal of Economic Perspectives, 25 (1), Winter, 29–48 37. Luc Laeven and Fabián Valencia (2013), ‘The Real Effects of Financial Sector Interventions During Crises’, Journal of Money, Credit and Banking, 45 (1), February, 147–77 38. Emilios Avgouleas, Charles Goodhart and Dirk Schoenmaker (2013), ‘Bank Resolution Plans as a Catalyst for Global Financial Reform’, Journal of Financial Stability, 9 (2), June, 210–18 Index

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Book SynopsisAll Fall Down traces the ways in which changes in financial structure and regulation eroded monetary control and led to historically high levels of debt relative to GDP in both developed and emerging economies. Rising stocks of debt drove the global financial system into crisis in 2008 when households, businesses, financial institutions and the public sector in some countries strained to generate sufficient income for debt service. The stagnation and fall in asset prices that followed began the process of unwinding that led to a run on the financial sector by the financial sector. This engaging examination describes critical developments that changed the structure of US financial markets as well as developments and innovations in US credit markets that created the context for crisis. It discusses the advent of dollar hegemony, the critical role of international reserves in generating credit, the emergence of the debt bubble in the 1980s and the mounting risks of debt in the new millennium. The author also proposes a systemic approach to monetary control, offering two new reform proposals. The analysis concludes that reforms are needed in order to support sustainable economic activity in the US and global economies. This volume will appeal to students and scholars of economics interested in international finance and banking, financial regulation and monetary policy implementation. It will also be of interest to business economists, lawyers, policymakers and journalists concerned with the effects of financial instability and involved in ongoing debates on financial and monetary reform.Trade Review‘This book provides a comprehensive assessment of how the monetary and financial system was transformed in the US during the last 50 years.’ -- Gökçer Özgür, Review of Keynesian EconomicsTable of ContentsContents: 1. Introduction and Summary Part I: The Unraveling of the 1930s-Era Framework 2. The Euro Market Erodes US Financial Structure 3. Commercial Paper Guarantees and the Emergence of a Parallel Banking System 4. ERISA Moves Savings into Securities Markets Part II: Deregulation and Financial Innovation Create the Context for Crisis 5. An Overview of Financial Restructuring and its Consequences 6. Securitization 7. Weaving the Web of Interconnectedness 8. Opaque Markets and Opaque Balance Sheets 9. Growing Concentration Leads to "Too Big to Fail" 10. Regulating the Post-Crisis System 11. Mending the Financial Safety Net for Savers Part III: The Advent of Globalization 12. Dollar Hegemony 13. Foreign Exchange Reserves 14. An Overview of Developments in Global Financial Markets in the 1990s Part IV: Building Toward Crisis in the Global Economy 15. Concerns and Warnings 16. Crises in the Periphery of the Global System 17. Liquidity Expansion in the Period Before the Crisis Part V: Debt and the Collapse of Monetary Control 18. The Failure to Halt the Emergence and Growth of the Debt Bubble 19. Rising Imbalances in Credit Flows 20. Mounting Risks of the Continuing Debt Bubble in the New Millennium 21. How Eroding Monetary Tools Facilitated Debt Creation 22. Monetary Tools: What They Are and How They Function 23. The Inability of Capital Requirements to Prevent or Moderate Financial Crises 24. How Crisis Reshaped the Monetary Toolkit Part VI: An Agenda for Monetary Reform 25. Introducing a Systemic Approach 26. Creating a System-wide Asset-based Reserve System 27. Implementing Policy Under the Current and Proposed Systems 28. Implications of the Proposed System for the Conduct of Policy Part VII: Reforming the Privatized International Monetary System 29. Can Special Drawing Rights Replace the Dollar and Other National Currencies as a Reserve Asset? 30. Restructuring Flows of Private International Investment into Emerging and Developing Economies 31. Reforming the International Payments System Part VIII: Conclusion 32. Building Toward Crisis in the Global Economy — Again Bibliography Index

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Book SynopsisThis volume contains thirty-seven contributions from the most significant early developers of monetary economics. Starting with Aristotle, the collection tracks the development of the modern theory of money through the ages by thinkers like Thomas Aquinas, Martin de Azpilcueta, John Locke, Richard Cantillon, David Hume, and A.R.J Turgot. Also included are the first translations of Jean Buridan's writings on money and of Albert the Great's writings on money from Latin. A Source Book on Early Monetary Theory will be of interest to bankers, historians, and macroeconomists and can be used as a supplementary text on courses in macroeconomics, money and banking, and the history of economic thought.Trade Review'Edward Fuller's convenient anthology of contributions to monetary economics by thirty writers before Adam Smith, from Aristotle to Hume and Condillac, will be greatly appreciated by anyone interested in the origins and development of monetary economics. Many of these important writings were previously difficult of access. Now it is easy, and enjoyable, to peruse in a single book the long and rich heritage of monetary analysis in the two millennia from Aristotle to Adam Smith.' -- Robert W. Dimand, Brock University, Canada'A timely book. Edward Fuller leads us back to the intellectual sources of sound thinking on money. His anthology is essential reading in an age of monetary insanity.' -- Guido Hulsmann, Universite d'Angers, France'Money has been making the world go 'round since ancient times. This volume , dealing with monetary thought from Aristotle to Condillac, provides, in one place, an excellent source of and easy access to the ideas of pre-Smithian monetary theorists, including translations of key writings. It should have a prominent place on the bookshelf of professional economists and advanced students alike.' -- Warren Young, Bar Ilan University, Israel and Carnegie-Mellon University, US'It is very useful to have in one volume the highlights of pre-Smithian European monetary theory, including some selections translated into English for the first time. The volume begins with Aristotle's influential (if theoretically dubious) remarks on money, followed by important commentaries they inspired from Albertus Magnus, Thomas Aquinas, and Jean Buridan. Next come choice selections from the brilliant medieval writer critic of debasement, Nicholas Oresme, and from several thoughtful Spanish scholastics including Juan de Mariana. Relevant monetary extracts from the early modern writers Grotius, Pufendorf, Locke, and Cantillon follow. The volume winds up with Scottish and French Enlightenment figures like Hutcheson, Hume, Turgot, and Condillac. Altogether this collection is a welcome resource for teachers and students of monetary history and the history of economic thought.' -- Lawrence H. White, George Mason University, USTable of ContentsContents: Foreword by Jesús Huerta de Soto vii Foreword by Joseph T. Salerno viii 1 Introduction: The Aristotelian Monetary Tradition 1 Edward W. Fuller 2 Aristotle: Nicomachean Ethics (c. 350 BC) 8 3 Aristotle: Politics (c. 350 BC) 11 4 Albert the Great: Commentary on Aristotle’s Nicomachean Ethics (c. 1262) 14 5 Albert the Great: Commentary on Aristotle’s Politics (c. 1263) 21 6 Thomas Aquinas: Commentary on Aristotle’s Nicomachean Ethics (c. 1271) 29 7 Thomas Aquinas: Commentary on Aristotle’s Politics (c. 1272) 34 8 Peter John Olivi: A Treatise on Contracts (c. 1295) 41 9 Jean Buridan: Commentary on Aristotle’s Nicomachean Ethics (c. 1336) 47 10 Jean Buridan: Commentary on Aristotle’s Politics (c. 1349) 54 11 Nicholas Oresme: Treatise on Money (1358) 70 12 Gabriel Biel: On the Power and Utility of Moneys (1495) 89 13 Copernicus: Essay on the Coinage of Money (1526) 96 14 Luís Saravia de la Calle: Instructions for Merchants (1544) 103 15 Martín de Azpilcueta: On Exchange (1556) 105 16 Tomás de Mercado: Manual of Deals and Contracts (1569) 113 17 Sir Thomas Smith: A Discourse of the Commonweal of this Realm of England (1581) 114 18 Francisco García: A Very General and Useful Treatise on Contracts (1583) 120 19 Bernardo Davanzati: A Discourse upon Coins (1588) 123 20 Luís de Molina: A Treatise on Money (1597) 132 21 Leonard Lessius: On Buying and Selling (1605) 134 22 Juan de Mariana: A Treatise on the Alteration of Money (1609) 137 23 Hugo Grotius: The Rights of War and Peace (1625) 168 24 Samuel Pufendorf: The Elements of Universal Jurisprudence (1660) 171 25 Samuel Pufendorf: The Whole Duty of Man (1673) 174 26 John Locke: Some Considerations of the Consequences of the Lowering of Interest, and Raising the Value of Money (1691) 177 27 Dudley North: Discourses upon Trade (1691) 194 28 Isaac Gervaise: The System or Theory of the Trade of the World (1720) 206 29 Richard Cantillon: An Essay on Economic Theory (1730) 217 30 Jacob Vanderlint: Money Answers All Things (1734) 244 31 Francis Hutcheson: Philosophiae Moralis Institutio Compendiaria (1747) 246 32 Ferdinando Galiani: On Money (1751) 248 33 David Hume: Of Money (1752) 260 34 David Hume: Of Interest (1752) 267 35 David Hume: Of the Balance of Trade (1752) 274 36 Joseph Harris: An Essay upon Money and Coins (1757–58) 283 37 A.R.J. Turgot: Reflections on the Formation and Distribution of Wealth (1766) 289 38 Étienne Bonnot de Condillac: Commerce and Government Considered in Their Mutual Relationship (1776) 296 Index 310

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Book SynopsisIn a series of in-depth interviews with leading economists and policy-makers from different schools including Austrian, Monetarist, New-Keynesian, Post-Keynesian, Modern Monetary Theory, Marxist and Institutionalist, this intriguing book sheds light upon the behaviour of economists and the sociology of the economics profession by enabling economists to express their views on a wide range of issues. Exploring why the aftermath of the 2008 global financial crisis did not pave the way for an uptake in heterodox economic approaches, these key thinkers consider why mainstream economics still reigns supreme and explore whether an alternative approach can be developed to rival it. The most important issues facing the discipline are addressed, and the book offers a particular focus upon the extent to which radical economists can work together to provide a genuine alternative to orthodoxy. The analytical responses to important questions posed to each interviewee make this a critical read for practising economists both inside and outside of academia. It will also be a thought-provoking book for economics students focusing both on orthodox and heterodox viewpoints, as it offers important insights to the nuances between a vast range of different schools of thought.Trade Review‘If one is a student of this discipline, the range of views presented in full is invaluable. I cannot recommend this text more.’ -- Hannes Ingo Torbohm, The Gower Initiative for Modern Money Studies'Can Heterodox Economics Make a Difference? is a very thought provoking book; a fascinating tour with key thinkers on MMT, heterodox economics, methodology and much more. There are authentic gems in those interviews. Please read on!' --Giuseppe Fontana, University of Leeds, UK and Università del Sannio, Italy'Philip Armstrong's rich conversations with heterodox economists explore, perhaps for the first time in depth, the perceptions and misperceptions of Modern Monetary Theory as seen across the spectrum of Keynesian, Marxian, Structuralist and Austrian thought, alongside the insights and arguments of leading proponents of the MMT school. For reading and reference, a valuable and timely book.' --James K. Galbraith, The University of Texas at Austin, US‘Philip Armstrong's rich conversations with heterodox economists explore, perhaps for the first time in depth, the perceptions and misperceptions of Modern Monetary Theory as seen across the spectrum of Keynesian, Marxian, Structuralist and Austrian thought, alongside the insights and arguments of leading proponents of the MMT school. For reading and reference, a valuable and timely book.’ -- James K. Galbraith, The University of Texas at Austin, US'The reader can ''listen in'' to all these conversations where questions are addressed, and debate engaged, from different perspectives. By engaging vicariously in the exchanges we are encouraged to rethink our own positions, and consider how to strengthen or amend them. Much of the success of the interviews is down to the engaging interview style of Phil Armstrong, whose thoughtful questions, openness to different arguments (at different levels), and eagerness to engage in civil debate, are the hallmarks of pluralism. Enjoy.' --from the Foreword by Sheila Dow, University of Stirling, UK‘These interviews and records are full of illuminations and enrich our understanding of modern economics, its problems as well as its achievements. We are much in Phil’s debt for bringing the interviews together. His enthusiasm and deep thinking run beneath the text of the volume. Please read on.’ -- from the Foreword by Geoff Harcourt, University of New South Wales, AustraliaTable of ContentsContents: Preface Foreword I: Professor Geoffrey Harcourt Foreword II: Professor Sheila Dow Introduction The Biographies of the Interviewees Part 1: Round one (R1) interviews (2018) i. Professor Victoria Chick ii. Professor Tim Congdon CBE iii Professor Paul Davidson iv. Professor Kevin Dowd v. Professor Roger Farmer vi. Professor Charles Goodhart FBA vii. Professor Geoffrey Harcourt viii. Dr. James Juniper ix. Professor Andrew Kliman x. Professor Marc Lavoie xi. Professor William (Bill) Mitchell xii. Warren Mosler xiii. Dr. Thomas Palley xiv. Professor Ricardo Reis xv. Professor Malcolm Sawyer xvi. Professor Willi Semmler xvii. Professor Anwar Shaikh xviii. Professor Englebert Stockhammer xix. Professor Martin Watts xx. Professor L. Randall Wray Part 2: Round Two (R2) 2019 i. Professor David Colander ii. Professor Sheila Dow iii. Professor Scott Ferguson iv. Professor Geoff Hodgson v. Professor Jonathan Joseph vi. Professor Steve Keen vii. Professor Tony Lawson viii. Professor Jamie Morgan ix. Dr. Ioana Negru x. Professor Nick Potts xi. Professor John Smithin Conclusion Bibliography Appendix 1: R1 and R2 questions Appendix 2: MMT White Paper by Warren Mosler Index

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Book SynopsisPart of The Elgar Series on Central Banking and Monetary Policy, this book explores the relationship between central banking, monetary policy and income distribution. The usual central bank mandate – that of exclusively fighting inflation – is being increasingly questioned by policymakers and academics. Many countries are finding that there is a need for broader mandates that will have an impact on economic activity, unemployment and other economic issues.The chapters present a multitude of theoretical views on this topic, from classical and Marxist views to mainstream and post-Keynesian approaches. They consider the democratic aspects of central banking, critically assess the distributional outcomes of inflation targeting regimes and explore policymaking implications.Policy makers, academics and the financial press will appreciate the relevance of the material and state of the art discussions featured in Central Banking, Monetary Policy and Income Distribution.Trade Review‘Inequality in the distributions of income and wealth continues to rise. Meanwhile, since the global financial crisis, central bankers have become aware that in a monetary-production economy, there’s more to life than “fine tuning” an economy with reference to an inflation target. The time is therefore ripe for reinvigoration of research into the links between monetary policy and distribution. And with its clear focus throughout on the interest rate–income distribution nexus, this book delivers.’ -- Mark Setterfield, New School for Social Research, US‘This book is a very welcome addition to the literature on central banking. Behind all the talk about “inflation targeting”, “dual mandates”, and so forth, it is obvious that monetary policy directly affects income distribution. Maybe this is what it has been about all along? The Editors have invited an impressive list of well-known and emerging scholars who explore the link between monetary policy and income and wealth inequalities in the best tradition of Keynes and post-Keynesian economics.’ -- John Smithin, York University, Canada‘This book blazes new terrain on the role of monetary policy by focusing on its impact on income inequality.’ -- Steven Pressman, Monmouth University, USTable of ContentsContents: Introduction to Central Banking, Monetary Policy and Income Distribution 1 Sylvio Kappes, Louis-Philippe Rochon and Guillaume Vallet PART I THEORY 1 A primer on monetary policy and its effect on income distribution: a heterodox perspective 20 Louis-Philippe Rochon and Mario Seccareccia 2 Monetary policy and functional income distribution: a Marxist view 35 Marcelo Milan 3 Savings glut, secular stagnation, demographic reversal, and inequality: beyond conventional explanations of lower interest rates 57 Matías Vernengo 4 The evolution of monetary institutions and of the theory of money: the value of a monetary theory of production and distribution 81 Michel Betancourt, Santiago Capraro, Carlo Panico and Luis Daniel Torres-González 5 Monetary policy and the distribution of income in a transfer theory of debt 114 Jan Toporowski PART II EVIDENCE 6 Monetary policy and income distribution 128 James K. Galbraith 7 The rate of interest and income distribution: an examination of the Pasinetti index in Latin America 139 Noemi Levy-Orlik and Jorge Bustamante 8 Why central bank policy is not income-distribution ‘neutral’: history, theory and practice 164 Mario Seccareccia and Guillermo Matamoros Romero PART III POLICY 9 Advancing the monetary policy toolkit through outright transfers and tiered reserve remuneration 191 Sascha Bützer 10 On interest and interest-rate policy 242 Massimo Pivetti 11 The distributional impacts of inflation-targeting strategies 261 Sergio Rossi Index

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Book SynopsisPart of the Elgar Series on Central Banking and Monetary Policy, this book explores the relationship between central banking, monetary policy and the economy at large. It focuses on the specific relationship between central banking, monetary policy and the environment as central banks wake up to new realities.The book examines not only the impact of changes in interest rates on the environment, but also the impact that the environment and climate change have on monetary policy. New green policies are proposed for central banks to implement as they move forward and navigate the pitfalls of climate change.Scholars and students interested in central banking, monetary policy and the environment will appreciate this take on Central Banking, Monetary Policy and the Environment.Trade Review‘The editors of this book have produced an amazing book for an equally amazing new series on central banking that could not have come out at a better time. Climate change and environmental issues are at the top of our concerns, and many are wondering what role central banks have to play in this saga. The editors have brought together an incredible list of established and younger scholars alike, from a heterodox perspective. They offer a refreshing analysis of the current situation and dare to offer credible and bold solutions for a green way forward. This book must be on the shelf of every student of economics.’ -- Steve Keen, Independent Economist‘More than any other current research topic, climate change exposes the flaws of mainstream approaches to economics while simultaneously highlighting the importance of insights from heterodox approaches, in particular post-Keynesian. Radical uncertainty is pervasive in even the most sophisticated climate models, complexity is inevitable when dealing with a planetary threat, and institutions cannot be abstracted away when political action is at the core of the problem. This remarkable book addresses these challenges head-on from the perspective of central banking, a subject in which the editors have amassed encyclopedic knowledge. It is essential reading for anyone interested in anything starting with the word “green”, including finance, bonds, quantitative easing, transition, or revolution.’ -- Matheus Grasselli, McMaster University, Canada‘Central Banking, Monetary Policy and the Environment provides a quite complete overview of the challenges and opportunities faced today by the financial and monetary systems in light of the vital imperative to fund worldwide sustainability transitions. At distance with the complacency of “green (market) finance”, the book provides clear cut and deep analyses of the conditions under which endogenous money, central banking or even new currencies can help redirect the power of money creation so as to save our natural ecosystems, our resources and our living conditions.’ -- Gael Giraud, Georgetown University, USTable of ContentsContents: Introduction to Central Banking, Monetary Policy and the Environment 1 Louis-Philippe Rochon, Sylvio Kappes and Guillaume Vallet 1 Central banks and the zero-carbon transition: an institutional challenge 21 Robert Guttmann 2 Monetary policy, environmental sustainability and the climate emergency 54 Malcolm Sawyer 3 Endogenous money, green finance and central bank power 72 Basil Oberholzer 4 Monetary and financial policies for an ecological transition: An overview of central banks’ actions and some reflections on post-Keynesian insights 90 Romain Svartzman 5 Environmental change and the international lender of last resort 110 Michel Aglietta and Etienne Espagne 6 Climate change, financial instability and central banking 134 Giada Valsangiacomo 7 Towards an ecological market 154 Wesley C. Marshall 8 Financial regulation, uncertainty and the transition to a net-zero-carbon economy 175 Josh Ryan-Collins 9 Money and the environment 199 Eric Kemp-Benedict 10 A green mandate: The Central Bank of Nigeria and sustainable development 218 Salewa Olawoye-Mann 11 Mind the gap: Monetary policy and financial regulations for supporting green finance 233 Lilit Popoyan and Giorgos Galanis Index

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Book SynopsisPart of The Elgar Series on Central Banking and Monetary Policy, this book explores the relationship between central banking, monetary policy and the economy at large. It focuses on the specific relationship between central banking, monetary policy and social responsibility as central banks wake up to new realities.The book examines this relationship not only in connection to the economic, monetary and financial impact of the so-called ‘unconventional’ monetary policies, but also in connection to the functioning of today’s democracies. A new framework and model for central banking is proposed in this rethinking of monetary policy, and the role of central banks as institutions in democracies is considered.Scholars and students interested in central banking and monetary policy, the issue of social responsibility and the relationship between central banks and democracy will benefit from the ideas presented by the editors and authors of Central Banking, Monetary Policy and Social Responsibility.Trade Review‘For the first time in decades, the very purpose of central banking is being debated again, and this time round not only by economists. Reflecting the debate’s breadth, this book will be useful for anyone who wants to form their own views before events drive the answers.’ -- Paul Tucker, Harvard Kennedy School, US, author Unelected Power and former central banker‘This book, a new look at central banks, could not be more timely. The Great Financial Crisis of 2007-2009 and the global Covid pandemic have been among the greatest economic and social challenges to hit the world's economies since the Second World War. As if these were not enough, the global climate crisis (along with the threat of nuclear annihilation) is the worst existential threat society has faced, perhaps in millennia. Central Banks, as one of the most powerful macroeconomic institutions in most countries, have been thrust into the position of needing to help ameliorate these unprecedented problems, and for most, these present dilemmas far beyond traditional trade-offs between inflation and unemployment. How are central banks dealing with these new, highly consequential issues? How should they deal with them? In this book, a refreshing variety of authors – some seasoned, some relatively new, and as a group coming from a range of backgrounds and places – take a number of fresh, thoughtful and thought-provoking looks at contemporary central banks as they grapple with these problems. All students of central banking, and anyone concerned about these major problems, will find something important and valuable in these pages. They can bank on it.’ -- Gerald Epstein, University of Massachusetts Amherst, US‘Central banks are institutions that wield extraordinary power on the economy, whose independence from political pressures has been lauded by professional economists for decades. Yet, the forceful responses by central banks during the Covid-19 and the Global Financial Crisis, have also raised the discomfort with such unelected powerful economics institutions. Central Banking, Monetary Policy and Social Responsibility reveals how professional economists are revisiting their previously held belief, how central banks themselves are coping, and perhaps ought to be coping with this issue. In it, economists and former central bankers are forced to bare their soul and expose their true values. A must read.’ -- Nadine Baudot-Trajtenberg, Former Deputy Governor of the Bank of Israel and Reichman University, IsraelTable of ContentsContents: Introduction to Central Banking, Monetary Policy and Social Responsibility 1 Guillaume Vallet, Sylvio Kappes and Louis-Philippe Rochon 1 Will central bank independence withstand political pressure? 20 Charles Goodhart and Manoj Pradhan 2 Some of the effects of monetary structures, politics, and memories on central banking 35 John H. Wood 3 The whys and how of central bank independence: from legal principles to operational accountability 57 Maqsood Aslam, Etienne Farvaque and Piotr Stanek 4 Bankocracy, or a new age of the European Central Bank 74 Marie Cuillerai 5 Central banking and inequalities: old tropes and new practices 88 François Claveau, Clément Fontan, Peter Dietsch and Jérémie Dion 6 Making environments safer: a safe asset for a green (and financial) new deal and for more responsible central banks – what could, and should, the ECB do? 112 Massimo Amato and Lucio Gobbi 7 Masters of the game: the power and social responsibility of central banks and central bankers in a democracy 136 Louis-Philippe Rochon and Guillaume Vallet 8 The past is already gone, the future is not yet here: the case of the Federal Reserve’s system of money management 159 Jong-Un Song 9 Precautionary monetary policy and democratic legitimacy: tensions and openings 172 Rob Macquarie 10 The social sources of “unelected power”: how central banks became entrapped by infrastructural power and what this can tell us about how (not) to democratize them 195 Timo Walter Index 219

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Book SynopsisOffering the first scholarly analysis of the economic nature of blockchains and the formation of the blockchain economy, this timely book explores the future of global capitalism. Applying the institutional economics of Ronald Coase and Oliver Williamson, the authors highlight how blockchains are poised to reshape the nature of firms, governments, markets and civil society. Chapters apply basic economic principles to explore blockchains and distributed ledger technologies through the framework of institutional economics. The book suggests ways in which cryptocurrencies such as Bitcoin may develop further in the future, bringing us back to a barter economy which removes the need for a third person in economic transactions. Outlining a ledger-centric view of the economy, the authors explore how blockchains and dehierarchalisation will reduce the demand for government regulation. Institutional economists and scholars will greatly appreciate the thorough analysis of the development of institutional cryptoeconomics and insight into the future of blockchains that this book offers. Computer and technology scientists will also find this book to be a valuable read, as well as those working specifically in the blockchain industry. Table of ContentsContents 1. Introduction 2. The institutional economics of blockchain 3. The Universal Turing Institution 4. The microfoundations of ledgers 5. Money, dequity, and the barter economy of the future 6. Supply chains and identity 7. The V-form organisation and the future of the firm 8. Public policy in a blockchain era 9. Capitalism after Satoshi 10. Conclusion References Index

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Book SynopsisThe Research Handbook of Financial Markets carefully discusses the histories and current states of the most important financial markets and institutions, as well as explicitly underscoring open questions that need study. By describing the institutional structure of different markets and highlighting recent changes within them, it accurately highlights their evolving nature. Taking the perspective that finance and macroeconomics are intertwined, this illuminating Research Handbook brings together prominent experts to investigate key market interactions. Chapters act as self-contained case studies of particular markets, allowing for a thorough individual examination of each. Ultimately, they offer a holistic understanding of financial markets and the current state of research. Academics and researchers in economics and finance curious about developments within financial regulation and banking will find this comprehensive Handbook to be hugely valuable. Market participants will additionally find it to be a useful reference, along with regulators seeking to mitigate financial instability.Trade Review‘Refet Gürkaynak and Jonathan Wright put together a comprehensive and thorough collection of chapters written by the best professionals. It is a gem and must-read for anybody who wants to take a deep dive into understanding the nuts and bolts of central banking, financial intermediaries, money, capital and derivatives markets.’ -- Eric Ghysels, University of North Carolina at Chapel Hill, US‘This book provides a comprehensive guide to modern financial markets and institutions, including historical context as well as the macroeconomic role of each element of the system. In clarity, rigor and depth, it far surpasses any previous efforts to explain how the international financial system actually works.’ -- Kenneth S. Rogoff, Harvard University, US‘Over the past decade, central banks have conducted monetary policy by intervening heavily in financial markets through a flurry of unconventional measures. This book brings together the wisdom from researchers with innate knowledge of the inner workings of financial markets. A must read for all those interested in how financial markets will evolve as central banks will unwind unconventional policies in the years to come.’ -- Luc Laeven, Director General, Research Department, European Central BankTable of ContentsContents: Introduction to the Research Handbook of Financial Markets 1 Refet S. Gürkaynak and Jonathan H. Wright PART I CENTRAL BANKING 1 The Federal Reserve balance sheet 6 Kristopher Dawsey, William B. English and Brian Sack 2 The balance sheet of the Eurosystem 33 Oreste Tristani 3 The Bank of Japan’s balance sheet 56 Kosuke Aoki 4 Central bank lending 79 Brian Madigan and William Nelson 5 The workings of liquidity lines between central banks 102 Saleem Bahaj and Ricardo Reis PART II INTERMEDIARIES 6 Banks 126 Refet S. Gürkaynak, Jonathan H. Wright and Egon Zakrajšek 7 Non-bank financial intermediaries and financial stability 147 Sirio Aramonte, Andreas Schrimpf and Hyun Song Shin 8 Government agencies: Fannie Mae and Freddie Mac 171 Gillian Burgess, Wayne Passmore and Shane M. Sherlund 9 Money market funds 194 Antoine Bouveret, Antoine Martin and Patrick E. McCabe PART III MONEY MARKETS 10 The federal funds market, pre- and post-2008 220 Eric T. Swanson 11 The repo market 237 Benjamin Munyan 12 The foreign exchange market 253 Alain Chaboud, Dagfinn Rime and Vladyslav Sushko PART IV CAPITAL MARKETS 13 The Treasury and when-issued markets 277 J. Benson Durham and Roberto Perli 14 The municipal bond market 301 Daniel Bergstresser 15 Mortgage-backed securities 331 Andreas Fuster, David Lucca and James Vickery 16 Equity trading 358 Caroline Fohlin 17 Sovereign debt 378 Leonardo Martinez, Francisco Roch, Francisco Roldán and Jeromin Zettelmeyer PART V DERIVATIVE MARKETS 18 Interest rate swaps 407 Bin Wei and Vivian Z. Yue 19 Credit default swaps 429 Antulio N. Bomfim 20 Foreign exchange swaps and cross-currency swaps 451 Angelo Ranaldo 21 Inflation hedging products 470 Stefania D’Amico and Thomas B. King 22 Futures and options 490 Refet S. Gürkaynak and Jonathan H. Wright Index 509

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Book SynopsisPart of The Elgar Series on Central Banking and Monetary Policy, this book explores the relationship between central banking, monetary policy and the economy at large, focusing on the specific relationship between central banking, monetary policy and the future of money.The book explores the complexity of the current monetary policy transmission channels and the issue of confidence in money. Scholars examine the specific relationship between central banking, monetary policy and the future of money, with a particular insight on digital and local currencies. Scholars and students interested in central banking and monetary policy, the digitalization of money and the relationship between central banks and the growth of local currencies will value this timely take on the new realities of central banking.entralTrade Review‘Research about the future of money is too often biased or incomplete because the potentialities of a single type of money (crypto-asset, central bank digital currency or local complementary currency) are analyzed by making technological development the main force for change. The authors of Central Banking, Monetary Policy and the Future of Money take up the challenge of approaching these potentialities by considering how the plurality of both material and institutional forms (public, private and community) evolves in various socio-economic and cultural contexts. We discover the possible scenarios in a future that is multiple and uncertain because it is constantly being reframed by the ever-changing present contexts.’ -- Jean-Michel Servet, Graduate Institute, Geneva, Switzerland‘The rapid evolution of forms of digital money has stimulated a vast wide-ranging literature on the “future” of money, especially the impact of the proliferation of cryptocurrencies on the relationships between monetary authorities and central banks. In contrast to the superficial speculative nature of much of the debate, the editors and contributors in this collection bring sound, meticulous scholarship and a thorough understanding of monetary theory and policy, setting an exemplary standard for future research.’ -- Geoffrey Ingham, University of Cambridge, UK‘This book on central banking, monetary policy and the future of money is driven by three talented economists under the auspices of post-Keynesian economics. Gathering many authors in its eleven chapters, the book largely explores the future under the heading of cryptocurrencies. Most articles deal with central bank digital currencies (CBDC), either theoretically or in describing this innovation in some countries. The theoretical underpinning, echoing Keynes’s view, is that CBDCs recover the sovereignty of money in the digital world.’ -- Michel Aglietta, Centre d’Études Prospectives et d’Informations Internationales (CEPII), FranceTable of ContentsContents: Introduction to Central Banking, Monetary Policy and the Future of Money 1 Guillaume Vallet, Sylvio Kappes and Louis-Philippe Rochon 1 Cryptocurrencies and the future of money 23 Matheus R. Grasselli and Alexander Lipton 2 Bitcoin design, theory of money and implications: a Keynesian assessment 57 Matheus Trotta Vianna 3 Cryptocurrencies, Big Techs, central bank digital currencies and the changing role of banks in the payment industry: old wine in new bottles? 76 Léo Malherbe and Matthieu Montalban 4 Is CBDC strengthening the monetary transmission mechanism? 94 Kristóf Lehmann, Zoltán Szalai and Pál Péter Kolozsi 5 CBDC: functional scope, pricing and controls 120 Ulrich Bindseil, Fabio Panetta and Ignacio Terol 6 Money creation and liquid funding needs are compatible 154 Marco Gross and Christoph Siebenbrunner 7 The Swedish e-krona: a means of guaranteeing the possibility of making payments for all 187 Eva Julin 8 Programmable central bank digital currency for monetary circuits of production 209 Andrés Arauz 9 Large-scale currency circuits as anti-crisis mechanism: the Argentine Redes de Trueque 221 Georgina M. Gómez 10 Community-based alternative currencies as drivers of new monetary arrangements 245 Jérôme Blanc and Marie Fare 11 ‘In money we trust’: the issue of confidence in money in the Swiss WIR system 272 Guillaume Vallet Index 302

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Book Synopsis2019 marked the 40th anniversary of the publication of Anthony P. Thirlwall's classic paper that laid out what became known as Thirlwall''s law. This article introduced and provided empirical evidence in favor of the proposition that the long-run rate of growth of an economy compatible with balance-of-payments equilibrium can be approximated by the simple rule of the ratio of the growth of exports to the income elasticity of demand for imports.Thirlwall's law provides a theoretical underpinning for several of the arguments traditionally espoused by the heterodox followers of Keynes. In addition, Thirlwall's law can also be viewed as a guide to policy-making. It has spurred a rich research agenda at both the theoretical and empirical levels. Theoretically the core model has been extended to include the different components of the current account of the balance of payments. Empirically, it has withstood the test of time and has been corroborated, with perhaps a few exceptions, for a variety of developed and developing countries under different historical contexts and different periods of time.This re-release of the special issue of the Review of Keynesian Economics brings together experts and researchers to present the latest developments and debates on Thirlwall's law. Students, economists and policy makers will find this volume enlightening.Table of ContentsContents: Symposium: Thirlwall’s Law at 40 Thirlwall’s law at 40 1 Esteban Pérez Caldentey and Matías Vernengo Why Thirlwall’s law is not a tautology: more on the debate over the law 3 J.S.L. McCombie Endogenous growth, capital accumulation and Thirlwall’s dynamics: the case of Latin America 18 Ignacio Perrotini-Hernández and Juan Alberto Vázquez-Muñoz Thirlwall’s law and the terms of trade: a parsimonious extension of the balance-of-payments-constrained growth model 37 Esteban Pérez Caldentey and Juan Carlos Moreno-Brid Thirlwall’s law, external debt sustainability, and the balance-ofpayments- constrained level and growth rates of output 60 Gustavo Bhering, Franklin Serrano and Fabio Freitas Growth transitions and the balance-of-payments constraint 72 Excellent Mhlongo and Kevin S. Nell New Structuralism and the balance-of-payments constraint 91 Gabriel Porcile and Giuliano Toshiro Yajima Is Indonesia’s growth rate balance-of-payments-constrained? A timevarying estimation approach 111 Jesus Felipe, Matteo Lanzafame and Gemma Estrada Thoughts on balance-of-payments-constrained growth after 40 years 128 A.P. Thirlwall

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Book SynopsisThis timely book is an innovative look at how blockchain technology will transform the structure of social and economic life. The security of blockchain supports the provision and maintenance of reliable databases and the creation of rule-based governance protocols. Leading contributors expertly review the impact of blockchain on existing structures of law, monetary systems, supply chains and business organizations. Using economic and institutional theory, the book presents a vision for understanding the future development of blockchain technology and outlines the likely path of transformation that blockchain will drive in industry, supply chains and firms. Furthermore, it answers key questions such as: will Bitcoin or another cryptocurrency become the money of the future? How has blockchain already begun transforming economic activity? How can we evaluate the likely trajectory of technological development and application? This informative book is an excellent resource for academics or professionals interested in a theoretically sound perspective on blockchain. Written in an accessible prose, it provides an introduction for non-experts looking to learn more about the wide-ranging implications of blockchain and cryptocurrency.Trade Review‘How are blockchain programs, on which cryptocurrencies and other applications are built, shaping the future of firms, markets, and finance? James Caton has assembled a first-rate group of contributors to provide cutting-edge insights into the new technologies and their sometimes surprising implications. Readers of this volume will be a step ahead in understanding what is happening in the evolution of payment systems and in the governance of market institutions.’ -- Lawrence H. White, George Mason University, US‘The Economics of Blockchain and Cryptocurrency reveals the profound impact of blockchain, and its growing suite of applications, in reconfiguring the costs of economic exchange. This engaging collection, written by leading experts in the field, represents an essential guide to understanding the operational and institutional implications of blockchain.’ -- Mikayla Novak, Australian National University, AustraliaTable of ContentsContents: Introduction to The Economics of Blockchain and Cryptocurrency x James Lee Caton 1 Institutional cryptoeconomics 1 Sinclair Davidson and Jason Potts 2 Can cryptocurrencies become a commonly accepted means of exchange? 13 Nicolás Cachanosky 3 Fiat money, cryptocurrencies and monetary theory 29 David Glasner 4 The value of bitcoin in the year 2141 (and beyond!) 51 Joshua R. Hendrickson and William J. Luther 5 The Silicon Savannah: exploring the promise of cryptocurrency in Africa 69 Scott Burns 6 How blockchain technology can impact agriculture 95 Prithviraj Lakkakula and William W. Wilson 7 Blockchain and the law – legality, law-like characteristics, and legal applications 117 Eric Alston 8 Signals and incentives in blockchain applications 145 Cameron Harwick 9 Trustless architecture and the V-form organization 165 Chris Berg, Sinclair Davidson and Jason Potts 10 On V-form firms: governance, cryptocurrency, and internalization on the blockchain 181 James Lee Caton Index

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Book Synopsis'Monetary policy is not just a matter of optimal stabilization policy; it is also fundamentally a matter of politics. But while this observation is commonplace, it is not adequately incorporated into economists' reasoning and analysis. Gerald Epstein's work represents perhaps the most prominent exception to this last rule. Reading him provides a salutary reminder that we need to pay closer attention to this political aspect when thinking about central banks and what they do.' - Barry Eichengreen, University of California, Berkeley, US Central banks are among the most powerful government economic institutions in the world. This volume explores the economic and political contours of the struggle for influence over the policies of central banks such as the Federal Reserve, and the implications of this struggle for economic performance and the distribution of wealth and power in society. Written over several decades by Gerald Epstein and co-authors, these works explore why central banks do what they do, and how they could better operate. Epstein shows that central banks are a contested terrain over which major economic and political groups fight for control; and demonstrates that though in the US and most other countries, private bankers have the upper-hand in this political struggle, they don t always win. Graduate students, faculty and advanced undergraduates in economics, political science and sociology who are interested in central banking and finance as well as specialists who focus on central banking will find greater understanding of central banks through The Political Economy of Central Banking.Trade Review'For decades Jerry Epstein has been shattering myths around central banking and forcing us to think differently about this institution. This invaluable collection brings together his path breaking work on the subject. A careful reading of the book makes it impossible to sustain the argument that central banks stand above politics and that they have served the public good through a single minded focus on inflation. The book arrives at precisely the right time, i.e., when we desperately need new ideas about how to remake our economic institutions so that they work for all.' --Ilene Grabel, University of Denver, US and author of When Things Don't Fall Apart: Global Financial Governance and Developmental Finance in an Age of Productive Incoherence'Central Bankers, and the Federal Reserve in particular, has been portrayed as a group of technocrats working to serve in the public interest. Through insightful analytical and empirical analyses, Jerry Epstein shows that in reality the Fed can act like a Wizard of Oz. Epstein's hard work pulls back the curtain for us all to see how Central Banking really works, and proposes concrete reform regarding how it can be the engine of an economy that promotes stability, growth and prosperity.' --Kevin P. Gallagher, Boston University, US'Professor Gerald Epstein has been a pioneer in extending political and class conflict considerations to the analysis of central banks and monetary policy. With regard to macroeconomics, he was one of the first to introduce the critical distinction between industrial and financial capital. With regard to monetary policy, he has been a leader in framing central banking as a politically contested space. That frame makes a mockery of mainstream claims that central banks can be politically neutral. Instead, they are riddled with the preferences and beliefs of those in control. This collection of his papers is both a tribute to Professor Epstein and an essential reference.' --Thomas Palley, independent economistTable of ContentsContents: Introduction Gerald Epstein PART I FINANCE, MACROECONOMIC POLICY AND CENTRAL BANKING: FROM VOLCKER TO TRUMP 1 ‘Domestic Stagflation and Monetary Policy: The Federal Reserve and the Hidden Election’, in Thomas Ferguson and Joel Rogers (eds), The Hidden Election: Politics and Economics in the 1980 Presidential Campaign , New York, NY, USA: Pantheon Books, 1981, 141–95 2 ‘Federal Reserve Behavior and the Limits of Monetary Policy in the Current Economic Crisis’, in Robert Cherry, Christine D’Onofrio, Cigdem Kurdas, Thomas R. Michl, Fred Moseley and Michele I. Naples (eds), The Imperiled Economy: Book I: Macroeconomics from a Left Perspective , Chapter 23, New York, NY, USA: The Union for Radical Political Economics, 1987, 247–55, references 3 ‘Trumponomics: Should We Just Say “No”?’, Challenge , 60 (2), 2017, 104–21 PART II CAPITALISTS, WORKERS AND WALL STREET: THE FIGHT FOR THE FEDERAL RESERVE 4 ‘Federal Reserve Politics and Monetary Instability’, in Alan Stone and Edward J. Harpham (eds), The Political Economy of Public Policy , Chapter 9, Beverly Hills, CA, USA: Sage Publications, 1982, 211–40 5 ‘The Federal Reserve–Treasury Accord and the Construction of the Postwar Monetary Regime in the United States’, with Juliet B. Schor, Social Concept , 7 (1), July, 1995, 7–48 6 ‘Monetary Policy, Loan Liquidation, and Industrial Conflict: The Federal Reserve and the Open Market Operations of 1932’, with Thomas Ferguson, Journal of Economic History , XLIV (4), December, 1984, 957–83 7 ‘Corporate Profitability as a Determinant of Restrictive Monetary Policy: Estimates for the Postwar United States’, with Juliet B. Schor, in Thomas Mayer (ed.), The Political Economy of American Monetary Policy , Chapter 4, New York, NY, USA: Cambridge University Press, 1990, 51–63 PART III THE POLITICAL ECONOMY OF CENTRAL BANKING: ANALYTICAL AND EMPIRICAL PERSPECTIVES 8 ‘Contested Terrain’, in Louis-Philippe Rochon and Sergio Rossi (eds), The Encyclopedia of Central Banking , Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing Ltd, 2015, 105–7 9 ‘Macropolicy in the Rise and Fall of the Golden Age’, with Juliet B. Schor, in Stephen A. Marglin and Juliet B. Schor (eds), The Golden Age of Capitalism: Reinterpreting the Postwar Experience , Chapter 3, Oxford, UK: Clarendon Press, 1990, 126–52, references 10 ‘Political Economy and Comparative Central Banking’, Review of Radical Political Economics , 24 (1), March, 1992, 1–30 11 ‘A Political Economy Model of Comparative Central Banking’, in Gary Dymski and Robert Pollin (eds), New Perspectives in Monetary Macroeconomics: Explorations in the Tradition of Hyman P. Minsky , Chapter 9, Ann Arbor, MI, USA: The University of Michigan Press, 1994, 231–77 12 ‘Profit Squeeze, Rentier Squeeze and Macroeconomic Policy Under Fixed and Flexible Exchange Rates’, Economies et Sociétés , 25 (3), November/December, 1991, 219–57 13 ‘The Rise of Rentier Incomes in OECD Countries: Financialization, Central Bank Policy and Labor Solidarity’, with Arjun Jayadev, in Gerald A. Epstein (ed.), Financialization and the World Economy , Chapter 3, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing Ltd, 2005, 46–74 PART IV INFLATION TARGETING VS. DEVELOPMENTAL CENTRAL BANKING 14 ‘Financialization, Rentier Interests and Central Bank Policy’, 2002, 1–43 15 ‘Central Banks as Agents of Economic Development’, in Ha-Joon Chang (ed.), Institutional Change and Economic Development , Chapter 6, New York, NY, USA: United Nations University Press and London, UK: Anthem Press, 2007, 95–113 16 ‘Developmental Central Banking: Winning the Future by Updating a Page from the Past’, Review of Keynesian Economics , 1 (3), Autumn, 2013, 273–87 17 ‘Achieving Coherence Between Macroeconomic and Development Objectives’, in Joseph E. Stiglitz and Martin Guzman (eds), Contemporary Issues in Macroeconomics: Lessons from The Crisis and Beyond , IEA Conference Volume 155-II , Chapter 11, Basingstoke, UK and New York, NY, USA, Palgrave Macmillan, 2016, 148–59 PART V THE FEDERAL RESERVE AND THE GREAT FINANCIAL CRISIS OF 2007–2008 18 ‘Have Large Scale Asset Purchases Increased Bank Profits?’, with Juan Antonio Montecino, Institute for New Economic Thinking (INET) Working Paper No. 5 , December, 2014, 1–25 19 ‘The Political Economy of QE and the Fed: Who Gained, Who Lost and Why Did it End?’, with Juan Antonio Montecino, Political Economy Research Institute (PERI) Working Paper Number 408 , November, 2015, 1–25 20 ‘The Impact of Quantitative Easing on Income Inequality in the United States’, November, 2018 PART VI REFORMING THE FEDERAL RESERVE 21 ‘Statement on Monetary Policy’, Testimony Prepared for the House Committee on Banking, Finance, and Urban Affairs , July 19th, 1983, 1–11 22 ‘A Debate with Robert Pollin: Should Congress Control the Federal Reserve?’, with Robert Pollin, Dollars & Sense , 136 , May, 1988, 12–17, 22 23 ‘Reforming the Federal Reserve for the 21st Century’, 2018 Index

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Book SynopsisThis ground-breaking book analyses the severe monetary policy challenges facing Latin American countries. Contributors reflect on how these issues should be addressed by policy-makers, identifying the need for a synergic response from regional central banks.Arguing that the challenges currently faced by regional central banks are intrinsically related, this book examines the risks generated by an international climate of uncertainty. It explores how to address inflationary pressures, output contraction, external vulnerabilities, tightness in advanced central banks’ monetary policies, nominal dollar appreciation, and falling commodity prices. Chapters focus on key elements of monetary policy, including transmission channels, exchange rates, international reserves, sustainable finance, and income inequality, to give an alternative view on the position of regional central banks in the global financial system.Monetary Policy Challenges in Latin America will be an invaluable resource for students and scholars of monetary policy, development economics, banking, and political economy. It will also be essential reading for policy-makers seeking new perspectives on monetary policy.Trade Review‘In this significant contribution, the editors and authors identify several key analytical dimensions for monetary policy makers in Latin America, while providing a comprehensive view on how to address the main monetary challenges of our time with concrete proposals, theoretical discussions, empirical evidence and analytical rigour. An outstanding contribution which should be widely read by scholars, students and policy makers.’ -- Stephany Griffith-Jones, Emeritus Professorial Fellow, Institute of Development Studies, Sussex University, UK‘What a wonderful collection of essays on the challenges faced in Latin America. The editors have brought together an impressive list of scholars, both young and more established, to tackle difficult questions surrounding monetary policy. This book is an important step forward and must be read by all who wish to understand the complexity surrounding the economics of Latin America. Congratulations to the editors and to the authors.’ -- Jose Antonio Ocampo, Professor, Columbia University, US and former United Nations Under-Secretary-General for Economic and Social Affairs and Minister of Finance of Colombia‘This book puts together 14 excellent policy-oriented - theoretical and empirical - contributions from important post-Keynesian and Structuralist economists. It focuses on policy and institutional arrangements to manage and overcome Balance-of-Payments constraints in Latin America. A must-read for those interested in heterodox short and medium-run open economy macroeconomics.’ -- Ricardo Summa, Professor of Economics, Federal University of Rio de Janeiro (UFRJ), BrazilTable of ContentsContents: Introduction to Monetary Policy Challenges in Latin America xxi Fernando Toledo and Louis-Philippe Rochon PART I ALTERNATIVE VIEWS ABOUT CENTRAL BANKS AND MONETARY POLICY IN LACS 1 Assessing the new “integrated policy framework”: a counterfactual analysis of the case of Argentina 2 Sebastián Valdecantos 2 Macroeconomic policy under a managed floating exchange rate regime: a critical appraisal of the international currency hierarchy literature 16 Simone Deos and Enzo Gerioni PART II MONETARY POLICY TRANSMISSION CHANNELS IN LACS 3 Inflation targeting in open economies: the contradictions of determinacy and stability 34 Esteban Pérez Caldentey and Matías Vernengo 4 Limitations of monetary policies in open developing economies: external capital inflows and sterilisation policies 59 Noemí Levy Orlik 5 Global financial cycle and monetary policy rules: a neo-Kaleckian model for emerging markets and developing economies 78 Gabriel Michelena and Fernando Toledo PART III MONETARY POLICIES AND EXCHANGE RATES IN LACS 6 Exchange rate management in Latin America: towards the making of a policy target exchange rate 97 Daniel Pérez-Ruiz, Gary Dymski, and Annina Kaltenbrunner 7 Real exchange rates, growth, and inflation targeting 117 Nelson Barbosa Filho 8 When are devaluations more contractionary? A quantile VAR estimation for Argentina 132 Gabriel Montes-Rojas and Nicolás Bertholet PART IV MONETARY POLICIES, INTERNATIONAL RESERVES, AND SUSTAINABLE FINANCE IN LACS 9 Latin American Reserve Fund: Latin America’s alternative to the IMF? 150 William N. Kring 10 Climate change, monetary policy, and green finance in Latin America: the open economy dimension 168 Pablo G. Bortz and Nicole Toftum PART V MONETARY POLICIES, CENTRAL BANKS, INCOME INEQUALITY, AND FISCAL POLICIES IN LACS 11 Fiscal responses to income inequality surges. A panel estimation for Emerging Market and Developing Economies (EMDEs) 185 Jorge Carrera, Pablo de la Vega, and Fernando Toledo 12 Fiscal and monetary policy challenges after COVID-19: The Argentinean case 206 Damián Pierri 13 International reserves, repurchase agreements, and the Brazilian monetary policy 220 Sylvio Antonio Kappes 14 External debt and economic growth in Latin America and the Caribbean 230 Alfredo Schclarek Curutchet Index 256

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Book SynopsisResponding to global events, including the international financial crisis (IFC) and the COVID-19 pandemic, central banks and the monetary regimes in many Latin American countries responded with actions to mitigate the worst impacts. The authors in this book focus on the recent trends of monetary policy in Latin America and analyze how the actions that were taken have affected the economic performance of these countries.The book is composed of 11 chapters that analyze, theoretically and empirically, the central banks’ actions and the monetary regimes of the following countries: Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Uruguay. As most of these countries implemented inflation-targeting regimes in the 1990s and 2000s, a special focus will be given on these experiences and how central banks dealt with the IFC and COVID-19 crises.Academic researchers and students of economics will find a wealth of knowledge contained in these chapters, as will anyone looking for a better understanding of the economy of this important region.Table of ContentsContents: Foreword x Louis-Philippe Rochon Introduction to Central Banks and Monetary Regimes in Emerging Countries xv Fernando Ferrari-Filho and Luiz Fernando de Paula 1 Costs and benefits of currency internationalisation: theory and the experience of emerging countries 1 Bianca Orsi, Antonio José Alves Junior and André de Melo Modenesi 2 Monetary institutions and economic performance in Latin America: the experience with an inflation targeting regime in the period 2000–2020 19 Eliane Araujo, Elisangela Araujo and Mateus Ramalho Ribeiro da Fonseca 3 Monetary policy in Brazil under the inflation targeting regime from a Contested Terrain Approach 43 Assilio Araujo and Fernando Ferrari-Filho 4 The unfinished stabilization of the Real Plan: an analysis of the indexation of the Brazilian economy 61 José Luís Oreiro and Julio Fernando Costa Santos 5 The role of capital flow management measures when the bubble bursts: the Brazilian experience in the global financial crisis and in the COVID-19 pandemic 82 Luiza Peruffo, Pedro Perfeito da Silva and André Moreira Cunha 6 Back to a high-inflation regime? The Argentine economy from the 2000s to the COVID-19 crisis 103 Hernán E. Neyra and Andrés Ferrari Haines 7 The new foreign debt trap and its long run consequences: the persistence of Monetarism as a social doctrine in Argentina 126 Juan Matias De Lucchi and Matías Vernengo 8 The monetary circuit and the credit channel in Mexico 146 Roberto Valencia Arriaga and Santiago Capraro Rodríguez 9 Monetary policy in Latin America during the COVID-19 crisis: was this time different? 171 Luiz Fernando de Paula, Paulo José Saraiva and Mateus Coelho Ferreira 10 The Central Bank of Brazil in the face of the COVID-19 economic crisis 190 Isabela Andrade do Carmo and Fábio Henrique Bittes Terra 11 The financial aspects of the COVID-19 crisis in Brazil: a Minskyan approach 208 Norberto Montani Martins, Ernani Teixeira Torres Filho and Luiz Macahyba Index

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Book SynopsisCOVID-19 and the Response of Central Banks analyses the reactions of central banks to the COVID-19 crisis in Sub-Saharan Africa. It focuses on how the pandemic has affected the economic performance of Sub-Saharan African countries, many of which were already struggling with growth and sustainability.The first part of the book covers countries within monetary unions such as Cameroon, Congo, Senegal, and Cote d'Ivoire. In the second half, countries with their own independent central banks such as the Democratic Republic of Congo, Nigeria, Ghana, and Sierra Leone, are discussed. Chapters highlight the differences between monetary union membership and independent central banks during health crises and explore the role of central banking in minimizing the deleterious effects.This theoretical and empirical analysis of central bank reactions and monetary regimes in these Sub-Saharan African countries is important, useful information for central bankers and policymakers responsible for making decisions before, during, and post crises. Among others, graduate students interested in development analysis and how monetary policy works in Africa will also benefit from the insight in COVID-19 and the Response of Central Banks.Trade Review‘The chapters in this book through examining the response of central banks to the COVID-19 pandemic provide much needed discussion on and insights into the roles of Central Banks in Sub-Saharan African countries. The COVID-19 pandemic and its impact on economies forced governments and central banks across the world to shift out of business as usual mode. Within developing countries, the pandemic reopened questions about health, resilience, economic development and macroeconomic policies, including monetary policy and the role of central banks.Salewa Olawoye has assembled valuable accounts of central bank responses and implementation of monetary policies for several countries across Sub-Saharan Africa in response to the pandemic. An important contribution of this book is to recognise the diversity across the countries of the region and to examine the role and effectiveness of country-specific monetary policy responses to the pandemic. This volume is an important contribution at a time when strategies to build resilience within countries and communities to pandemics, the impacts of climate change and other interrelated crises are urgently required.’ -- Seeraj Mohamed, Deputy Director, South African Parliamentary Budget Office‘Olawoye has assembled an excellent group of articles which show the different impact of monetary policy in African countries that are members of a currency union, or monetary sovereign. Her work underscores the significant, on the ground differences in their approaches to dealing with COVID-19, and the limitations imposed by monetary union.’ -- Joëlle J. Leclaire, State University of New York, Buffalo State, USTable of ContentsContents: Series editors’ introduction: COVID, policy and the state of our institutions xix Louis-Philippe Rochon, Sylvio Kappes and Guillaume Vallet Introduction to COVID-19 and the Response of Central Banks 1 Salewa Olawoye PART I COUNTRIES IN MONETARY UNIONS 1 Central banks’ responses to the COVID-19 pandemic: a survey of the Bank of Central African States 6 Simplice A. Asongu, Nathanael Ojong and Valentine B. Soumtang 2 The Bank of Central African States under the COVID-19 test: the case of the Congo 20 Toussaint Armel Bakala and Régis Bokino 3 Transmission channels of the COVID-19 pandemic effects in West African Economic and Monetary Union countries and BCEAO responses 37 Samba Diop and Adama Diaw 4 COVID-era monetary policy response in francophone West Africa with a focus on Cote d’Ivoire 53 Anick Yaha and Felix F. N’Zue PART II NON-MONETARY UNION COUNTRIES 5 Effects of COVID-19 on the DRC economy and policy responses from Central Bank of Congo and government 69 Pathou Kavena Lukau and Jonas Kibala Kuma 6 Monetary policy during the COVID-19 pandemic: a case study of the Central Bank of Nigeria 85 Salewa Olawoye and Adesuwa Erediauwa 7 Ghana’s monetary policy and COVID-19: a critical appraisal 104 Emmanuel Graham, John Bosco Dramani and Prince Boakye Frimpong 8 The role of the central bank in mitigating COVID-19 effects in Sierra Leone 121 Sheka Bangura and Morlai Bangura Index

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Book SynopsisPost-Keynesian Growth Theory is the second volume of Marc Lavoie's Selected Essays, and is a collection of 18 articles published between 1995 and 2020, on themes touching growth and distribution. The book contains an extended foreword by Eckhard Hein, and an introduction by Lavoie that recalls how he became attracted to post-Keynesian growth theory more than 45 years ago, and explains how and why this book came about.The collection includes a number of papers showing Lavoie's evolving approach to neo-Kaleckian models of growth and distribution, incorporating hysteresis, overhead labour, monetary issues, price inflation, as well as various sources of autonomous non-capacity creating expenditures. It shows how all of these interact with alternative Marxian or Sraffian approaches as well.A section of the book is also devoted to two-sector models, in particular the issue of the traverse from one equilibrium to another, extending the Kaleckian model but also providing insights into the works of Hicks and Pasinetti.Both professors and graduate students will benefit from the decades of experience and wisdom amassed and presented in Post-Keynesian Growth Theory.Trade Review‘The essays in this book show the promises, fruits and avenues for future research in post-Keynesian growth theory. Far from an exhausted paradigm, this book shows that PKE has maintained its vitality and relevance in advancing support for a demand-led view of long-run economic growth. Professors and students will benefit from the many insights and remarks of this book, as a whole or in specific chapters, as a guide for approaching the dynamics of modern economies.’ -- Pablo G. Bortz, Review of Political Economy‘Post-Keynesian Growth Theory by Marc Lavoie is a fascinating collection of essays showing us how a leading post-Keynesian economist got involved in working on growth and distribution. It is an essential volume for researchers and students alike to explore the key contributions in post-Keynesian theories of growth and distribution in historical context as the controversies and debates evolve.’ -- Ozlem Onaran, University of Greenwich, UK‘Even before now it could easily have been said of Marc Lavoie that he had “written the book” on Post-Keynesian growth theory. And now he really has. This collection of essays displays remarkable breadth, rigour, and coherence, and is a must-read for any serious scholar in the field.’ -- Mark Setterfield, New School For Social Research, USTable of ContentsContents: Foreword Eckhard Hein ix Introduction Marc Lavoie xvii PART I BASIC KALECKIAN MODELS OF GROWTH AND DISTRIBUTION 1 ‘The Kaleckian Model of Growth and Distribution and its Neo-Ricardian and Neo-Marxian Critiques’, Cambridge Journal of Economics, 19 (6), December 1995, 789–818 2 2 ‘Traverse, Hysteresis, and Normal Rates of Capacity Utilization in Kaleckian Models of Growth and Distribution’, Review of Radical Political Economics, 28 (4), 1996, 113–47 32 3 ‘Kaleckian Effective Demand and Sraffian Normal Prices: Towards a Reconciliation’, Review of Political Economy, 15 (1), January 2003, 53–74 67 4 ‘Cadrisme within a Post-Keynesian Model of Growth and Distribution’, Review of Political Economy, 21 (3), July 2009, 369–91 89 5 ‘The Origins and Evolution of the Debate on Wage-Led and Profit-Led Regimes’, European Journal of Economics and Economic Policies: Intervention, 14 (2), 2017, 200–221. 112 6 ‘Interest Rates in Post-Keynesian Models of Growth and Distribution’, Metroeconomica, 46 (2), June 1995, 146–77 134 7 ‘The Neo-Pasinetti Theorem in Cambridge and Kaleckian Models of Growth and Distribution’, Eastern Economic Journal, 24 (4), Fall 1998, 419–36 166 8 ‘Capacity Utilization, Inflation, and Monetary Policy: The Duménil and Lévy Macro Model and the New Keynesian Consensus’, with P. Kriesler, Review of Radical Political Economics, 39 (4), Fall 2007, 586–98 184 PART II KALECKIAN MODELS WITH AUTONOMOUS NON-CAPACITY CREATING EXPENDITURES 9 ‘Convergence Towards the Normal Rate of Capacity Utilization in Neo-Kaleckian Models: The Role of Non-Capacity Creating Autonomous Expenditures’, Metroeconomica, 67 (1), 2016, 172–201 198 10 ‘Long-Run Convergence in a Neo-Kaleckian Open-Economy Model with Autonomous Export Growth’, with W.J. Nah, Journal of Post Keynesian Economics, 40 (2), 2017, 223–38 228 11 ‘Convergence in a Neo-Kaleckian Model with Endogenous Technical Progress and Autonomous Demand Growth’, with W.J. Nah, Review of Keynesian Economics, 7 (3), September 2019, 275–91 244 12 ‘The Role of Autonomous Demand Growth in a Neo-Kaleckian Conflicting- Claims Framework’, with W.J. Nah, Structural Change and Economic Dynamics, 51, December 2019, 427–44 261 13 ‘Overhead Labour Costs in a Neo-Kaleckian Growth Model with Autonomous Non-Capacity Creating Expenditures’, with W.J. Nah, Review of Political Economy, 32 (4), 2020, 511–37 279 14 ‘Trends and Business Cycles with External Markets: Non-Capacity Generating Semi-Autonomous Expenditures and Effective Demand’, with B. Fiebiger, Metroeconomica, 70 (2), May 2019, 247–62. 306 PART III TWO-SECTOR GROWTH MODELS 15 ‘The Hicksian Traverse as a Process of Reproportioning: Some Structural Dynamics’, with J. Henry, Structural Change and Economic Dynamics, 8 (2), June 1997, 157–75 323 16 ‘Pasinetti’s Vertically Hyper-Integrated Sectors and Natural Prices’, Cambridge Journal of Economics, 21 (4), July 1997, 453–68 342 17 ‘Traverse in a Two-Sector Kaleckian Model of Growth with Target-Return Pricing’, with P. Ramírez-Gastón, Manchester School of Economic and Social Studies, 65 (2), March 1997, 145–69 357 18 ‘Demand-Led Growth and Long-Run Convergence in a Neo-Kaleckian Two- Sector Model’, with J.H. Kim, Korean Economic Review, 33 (1), Summer 2017, 179–206 382 Index

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Book SynopsisProviding an up-to-date account of Modern Monetary Theory (MMT) with contributions from the world’s leading experts, each chapter offers new insights on the topic, building upon MMT’s established body of work. This innovative book analyses key economic issues from a wide set of regions including the UK, Europe and the Global South, addressing previous concerns that MMT is too US-focused.Alongside ground-breaking research written by MMT’s original developers and leading academics, the book also includes contributions from economic historians and public policy campaigners, highlighting how MMT contributes to challenging neoliberalism and the hegemony of mainstream macroeconomics. Offering an examination of the existing legal, institutional and policy framework which governs the UK Exchequer in particular, it examines how the central claims of MMT map onto the financial activities of the UK government.This will be key reading for undergraduate and postgraduate economics students, as well as more advanced scholars of the discipline, particularly for those looking into theories of finance, money and banking. It will also have a wider appeal across the social sciences, including politics and sociology students.Trade Review‘This is a fascinating, eclectic group of professional papers in which the reader may explore both the first principles of Modern Monetary Theory and many institutional and historical details that lend weight to the conceptual framework. This book is a landmark in the development of MMT, a boon for “useful” economists -- and a profound challenge to all the others.’ -- James K. Galbraith, The University of Texas at Austin, US‘This book brings together insights from MMT scholars from all over the world, examining the economy of the UK as well as the global economy and providing us with much needed insights about how to manage our economies.’ -- Dirk Ehnts, Fachhochschule Magedburrg-Stendal, GermanyTable of ContentsContents: Preface xiii Phil Armstrong Introduction to Modern Monetary Theory: Key Insights, Leading Thinkers xvii Sara Holland, Claire Jackson-Prior and Prue Plumridge 1 How does the government spend? A functional model of the UK Exchequer 1 Andrew Berkeley, Richard Tye and Neil Wilson 2 Credit and the Exchequer since the Restoration 41 Richard Tye 3 Sovereign nations face resource constraints, not financial constraints 67 Yeva Nersisyan and L. Randall Wray 4 A framework for the analysis of the price level and inflation 87 Warren Mosler 5 The external economy 94 William Mitchell 6 Modern Monetary Theory, the United Kingdom and pound sterling 125 John T. Harvey 7 The Eurozone and Brexit 152 Stuart Medina Miltimore and William Mitchell 8 Modern Monetary Theory as post-neoliberal economics: the role ofmethodology-philosophy 182 Phil Armstrong and Jamie Morgan 9 Tax as a hygiene factor: setting UK taxation policy using Modern Monetary Theory 207 Neil Wilson 10 Checklist of an employment guarantee programme: the Plan Jefes de Hogar from Argentina revisited 20 years later 226 Daniel Kostzer 11 Three lessons from government spending and the postpandemic recovery 253 Pavlina R. Tcherneva 12 MMT and public policy in the United Kingdom 263 Deborah Harrington and Jessica Ormerod Postscript: thoughts on MMT’s insights 289 L. Randall Wray Index

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Book SynopsisCOVID-19 and other recent crises have proved the need to review the state-of-play and implement robust institutional frameworks in the complex, heterogenous and decentralised European supervisory architecture. This insightful book outlines what can be done to innovate the current set-up in the face of pressing issues such as climate change, BigTech and crypto assets.Revisiting the debate on financial sector oversight in Europe, a range of highly acclaimed international academics and influential policymakers discuss the scope of institutional arrangements. Chapters examine how the architecture of European financial supervision currently works, analysing the trends in banking supervision design and the influence that recent financial and economic crises have exerted. Providing a rare insight into the role that central banks play in the supervisory set-up, their accountability and democratic legitimacy, the book also considers the ways that macro- and micro-prudential and monetary policies interact. Gleaning lessons from the FinTech revolution and the COVID-19 crisis, the book ultimately concludes by seeking a path for optimal architecture for European financial supervision.With invaluable industry insights, this cutting-edge book will prove vital to academics in the field of financial economics and financial regulation, alongside policymakers looking to transform their current supervisory architecture.Trade Review‘This volume provides a comprehensive and indispensable opportunity to take stock of the achievements and challenges of European banking supervision after the momentous reforms of the early 2010s, and on the related debates about financial supervisory architecture. While the complexity may at times appear dizzying, it is an important story whose policy lessons have relevance well beyond the boundaries of the euro area and European Union.’ -- Nicolas Véron, Bruegel, Belgium and the Peterson Institute for International Economics, USTable of ContentsContents: 1 Introduction to Central Banks and Supervisory Architecture in Europe 1 Robert Holzmann and Fernando Restoy PART I TRENDS IN EUROPEAN BANKING SUPERVISION DESIGN 2 The puzzle of Europe’s banking union: progress and missing pieces 14 Thorsten Beck 3 Supervisory architecture in the EU: where should we go from here? 21 Fernando Restoy 4 The architecture of supervision and prudential policy 34 Angela Maddaloni and Alessandro Scopelliti 5 Trends in European banking supervision design: is there a path to an optimal architecture for financial supervision in the EU? 49 Luís Silva Morais PART II THE ROLE OF CENTRAL BANKS (I): ASPECTS OF MONETARY AND MACROPRUDENTIAL POLICY INTERACTION 6 Can macroprudential tools ensure financial stability? 62 Anne Epaulard 7 The interaction of monetary and financial tasks in different central bank structures 71 Aerdt Houben, Jan Kakes and Annelie Petersen 8 Monetary and macroprudential policies: a troubled marriage 83 Phurichai Rungcharoenkitkul 9 The architecture of macroprudential policy: delegation and coordination 96 Charles Bean 10 Governance of financial sector policies in an era of climate change 108 Daniel C. Hardy PART III THE ROLE OF CENTRAL BANKS (II): MICROPRUDENTIAL SUPERVISION AND FINANCIAL STABILITY 11 Entrusting central banks with microprudential supervision: implications for financial stability 122 Anca Maria Podpiera 12 Is this time different? Synergies between ECB’s tasks 135 Karin Hobelsberger, Christoffer Kok and Francesco Paolo Mongelli 13 Money, supervision, and financial stability: a money-credit constitution entrusted to independent but constrained central banks 156 Paul Tucker 14 Politicians, central banks and macroprudential supervision 170 Donato Masciandaro PART IV THE FINTECH REVOLUTION: IMPLICATIONS FOR OPTIMAL SUPERVISORY ARCHITECTURE 15 Regulating and supervising BigTech in finance 181 José Manuel González-Páramo 16 The emerging autonomy–stability choice for stablecoins 194 Maarten R. C. van Oordt PART V LESSONS FROM THE COVID-19 CRISIS FOR THE OPTIMAL SUPERVISORY ARCHITECTURE 17 Some lessons from COVID-19 for the EU financial framework 206 Ignazio Angeloni 18 Central banks as emergency actors: implications for governance arrangements 218 David Archer Index

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Book SynopsisThis erudite book offers an extensive overview of the key debates taking place amongst Post Keynesian economists, acknowledging the vital contribution Post Keynesian scholarship has made to theoretical and policy discourse in the 21st century.Bringing together distinguished experts from across the globe, Post Keynesian Economics: Key Debates and Contending Perspectives discusses the profound questions of heterodox economic theory and the far-reaching implications for economic policy. Chapters consider the relationship between Post Keynesianism and other schools of heterodox economics; modern monetary theory and its links to Post Keynesian economics; as well as exploring issues of gender, race, climate change, and the growth of inequality in the distribution of income and wealth. In a time of global financial and political uncertainty, this book presents alternative views on monetary theory and policy, providing a much-needed antidote to ongoing economic debates.This book will be of great interest to students, academics and researchers focussing on heterodox economics, Post Keynesian economics, and the history of economic thought. Highlighting the critical relationships between finance, politics and sociology, this book will also be beneficial to academics and researchers interested in sociology, politics and political science.Trade Review‘The editors and authors of this excellent volume are to be applauded for putting together highly timely contributions that apply a traditional Keynes-Kalecki perspective to the most pressing socio-economic problems of the 21st century. In doing so, the authors shed light on potential pathways out of the permanent and manifold capitalist crises that coin current economic developments.’ -- Jakob Kapeller, University Duisburg-Essen, Germany‘Post Keynesian Economics: Key Debates and Contending Perspectives, edited by Therese Jefferson and John E. King, contains some stimulating contributions to current economic and economic policy debates. It provides important alternative views to the orthodoxy on pressing issues, such as inequality, racial and gender stratification, the COVID crisis, the ecological crisis, and macroeconomic and other policies to address them.’ -- Eckhard Hein, Berlin School of Economics and Law, GermanyTable of ContentsContents: 1 Introduction to Post Keynesian Economics 1 Therese Jefferson and John E. King 2 On the compatibility of post-Keynesian, Sraffian and evolutionary economics 14 Neil Hart and Peter Kriesler 3 Credit, money, and production: post-Keynesian economics and the circuit traditions 29 Louis-Philippe Rochon 4 The contribution of modern monetary theory to heterodox economics 48 Philip Armstrong 5 Modern Monetary Theory: the good, the bad and the ugly 72 Marc Lavoie 6 Identity, risk, and financial capitalism: a post Keynesian research agenda on racial and gender stratification in the U.S. 90 Melanie G. Long 7 The Green New Deal in a Kaleckian model of growth and distribution 111 Neil Perry 8 The Green New Deal: economic analysis and practical policy 131 Jonathan M. Harris 9 Macroeconomic theory and policy in the capitalism of “permanent catastrophe” 146 Riccardo Bellofiore and Giovanna Vertova 10 Lessons from COVID-19: UK experience 167 Malcolm Sawyer 11 Inequality after Piketty 191 John E. King 12 Piketty, Post Keynesian economics and income distribution 207 Steven Pressman 13 Concluding thoughts to Post Keynesian Economics 226 Therese Jefferson and John E. King

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Book SynopsisIt is widely believed that central banks have grown (the Bank of England) or were established (the Federal Reserve) to pursue the twin objectives of monetary and price stability. But why should they? Central bankers are people, too, whose behavior is presumably determined, like the rest of us, by their incentives and the information available to them. The author explores this question.Two sets of data confirm the reservations. Central banks have often worsened, even initiated, monetary instabilities by bailing out the risk-takers and their effects on prices, which depending on the quantities of money created by central banks, have often been catastrophic. The evidence suggests that central bankers have really been in business to support the politically powerful upon whose favors they depend, particularly high-spending governments and needy financial institutions. The book consists of several examples of this behavior and its consistency during wars and financial crises in the UK and US over the course of the last two centuries.Professors and students of finance will find A Comparative History of Central Bank Behavior to be a compelling and thoughtful exploration of how central banks have historically responded to and influenced financial markets.Trade Review‘In A Comparative History of Central Bank Behavior, Wood investigates the reality behind the claim of central bank “independence.” Through probing investigation of historical episodes for both the Bank of England and the Federal Reserve System, he documents convincingly that their behavior is a complicated result of the exigencies of government. Anyone interested in the design of -- the monetary arrangements of a country needs to take into account the interplay of forces that determines central bank policies.’– Robert L. Hetzel, Retired, Federal Reserve Bank of Richmond, US‘By mixing political economy and history in perfect proportions this book forcefully presents enduring and timely lessons about central banks, their purposes and their accomplices. I could not put this book down.’ -- Thomas Sargent, New York University and Hoover Institution, Stanford, USTable of ContentsContents: Preface 1. Governments and their banks 2. Aristocratic government and the Bank of England during the Age of Reform 3. The commercial crisis of 1847 4. The Bank of England and the Great Depression 5. The Bank of England after the Great Depression 6. American monetary policy in the nineteenth century 7. The Federal Reserve and the Great Depression 8. The Great Recession 9. The politics of famine 10. Endless wars 11. Summary: government and the public References Index

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Book SynopsisThis volume contains an Open Access Chapter The Sustainability of Health Care Systems in Europe provides a comprehensive understanding of the sustainability of health systems in Europe. Furthermore, it includes an introduction to how EU action in supporting health- care policies in the EU Member States, looking both at implemented actions and describing current priorities for the future. There has been a rapid evolution of the structure of society and the economy over the last few decades which has created new demands for healthcare services. This has placed pressure on policy makers to ensure the sustainability of the health care sector. Policy makers understand the efficiency of the healthcare delivery system needs to be improved, the shortage of health professionals must be tackled, and that there are growing health inequalities and inequity in access to healthcare. These challenges are exacerbated by recent econo

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Book SynopsisPost-Keynesian Monetary Theory recaps Marc Lavoie's views on monetary theory over a 35-year period, seen from a post-Keynesian perspective. The book contains a collection of twenty previously published papers, as well as an introduction which explains how these papers came about and how they were received. All of the selected articles avoid mathematical formalism. Readers will find analyses of the earlier advocates of endogenous money such as Nicholas Kaldor and Jacques Le Bourva. They will discover how the arguments in support of the post-Keynesian theory of endogenous money and the credit view of banking have evolved through this 35-year period, and how they have been related to the new procedures pursued by central banks. All these essays show the relevance of the realistic post-Keynesian monetary theory in understanding the subprime and euro crises, quantitative easing and the distributional role of interest rates. Within these pages Marc Lavoie provides an overview of what has happened in post-Keynesian monetary economics over the last three and a half decades for students and scholars with interest in monetary economics, the horizontalist-structuralist debates and the recent history of economic thought.Trade Review'This collection of early essays on endogenous money by Marc Lavoie (and some later ones) is of the utmost importance. Marc s commentary on the essay about Jacques Le Bourva is pivotal - '...a theory [of] the endogeneity of money is insufficient...one also has to reject the existence of a natural rate of interest ...'' --John Smithin, York University, Toronto and Aurora Philosophy Institute, Canada'Marc Lavoie has been a leading post-Keynesian economist for a long time. This book presents a collection of important papers, published over four decades, in one of his areas of specialization, monetary theory. It contains path-breaking contributions to the theory of endogenous money and credit and to monetary policy analysis.' --Eckhard Hein, Berlin School of Economics and Law, Germany'This is a great collection of papers, written over four decades, displaying the many contributions which Marc Lavoie has made to the development of Post-Keynesian monetary theory. A highly recommended read of Marc's in-depth analyses of endogenous money and credit and contributions to policy debates.' --Malcolm Sawyer, Emeritus Professor of Economics, University of Leeds, UKTable of ContentsContents: Foreword Louis-Philippe Rochon Introduction Marc Lavoie PART I EARLIER AND EASIER WRITINGS 1 ‘The Endogenous Flow of Credit and the Post Keynesian Theory of Money’, Journal of Economic Issues , 18 (3), September 1984, 771–97 2 2 ‘The Post Keynesian Theory of Endogenous Money: A Reply’, Journal of Economic Issues , 19 (3), September 1985, 843–8 29 3 ‘Credit and Money: The Dynamic Circuit, Overdraft Economics, and Post- Keynesian Economics’, in M. Jarsulic (ed.), Money and Macro Policy , Kluwer- Nijhoff, Boston, 1985, 63–84 35 4 ‘A Primer on Endogenous Credit-Money’, in L.-P. Rochon and S. Rossi (eds), Modern Theories of Money: The Nature and Role of Money in Capitalist Economies , Edward Elgar, Cheltenham, UK and Northampton, MA, USA, 2003, 506–43 57 PART II INSPIRING AUTHORS 5 ‘Change, Continuity, and Originality in Kaldor’s Monetary Theory’, in E.J. Nell and W. Semmler (eds), Nicholas Kaldor and Mainstream Economics: Confrontation or Convergence? , Macmillan, London, 1991, 259–78 96 6 ‘Jacques Le Bourva’s Theory of Endogenous Credit-Money’, Review of Political Economy , 4 (4), 1992, 436–46 116 7 ‘Eichner’s Monetary Economics: Ahead of Its Time’, in M. Lavoie, L.-P. Rochon and M. Seccareccia (eds), Money and Macrodynamics: Alfred Eichner and Post- Keynesian Economics , M.E. Sharpe, Armonk (NJ), 2010, 155–71 127 PART III IN DEFENSE OF HORIZONTALISM 8 ‘Monetary Policy in an Economy with Endogenous Credit Money’, in G. Deleplace and E.J. Nell (eds), Money in Motion: The Circulation and Post- Keynesian Approaches , Macmillan, London, 1996, 532–45 145 9 ‘Horizontalism, Structuralism, Liquidity Preference and the Principle of Increasing Risk’, Scottish Journal of Political Economy , 43 (3), August, 1996, 275–300 159 10 ‘The Credit-Led Supply of Deposits and the Demand for Money: Kaldor’s Reflux Mechanism as Previously Endorsed by Joan Robinson’, Cambridge Journal of Economics , 23 (1), January 1999, 103–13 185 11 ‘Endogenous Money: Accommodationist’, in P. Arestis and M. Sawyer (eds), Handbook on Alternative Monetary Economics , Edward Elgar, Cheltenham, UK and Northampton, MA, USA, 2006, 17–34 196 PART IV THREE INNOVATING ARTICLES 12 ‘Monetary Base Endogeneity and the New Procedures of the Asset-Based Canadian and American Monetary Systems’, Journal of Post Keynesian Economics , Summer 2005, 27 (4), 689–709 215 13 ‘Towards a Post-Keynesian Consensus in Macroeconomics: Reconciling the Cambridge and Wall Street Views’, in E. Hein, T. Niechoj and E. Stockhammer (eds), Macroeconomic Policies on Shaky Foundations – Whither Mainstream Economics? , Metropolis-Verlag, Marburg, 2009, 75–99 236 14 ‘Fair Rates of Interest in Post-Keynesian Political Economy’, in J. Teixeira (ed.), Issues in Modern Political Economy , University of Brasilia Press, Brasilia, 1997, 123–37 261 PART V AFTER THE GLOBAL FINANCIAL CRISIS 15 ‘Changes in Central Bank Procedures During the Subprime Crisis and Their Repercussions on Monetary Theory’, International Journal of Political Economy , 39 (3), Fall 2010, 3–23 277 16 ‘The Monetary and Fiscal Nexus of Neo-Chartalism: A Friendly Critique’, Journal of Economic Issues , 47 (1), March 2013, 1–31 298 17 ‘The Eurozone: Similarities to and Differences from Keynes’s Plan’, International Journal of Political Economy , 44 (1), Spring 2015, 3–17 329 18 ‘Rethinking Monetary Theory in Light of Keynes and the Crisis’, Brazilian Keynesian Review , 2 (2), 2016, 174–88 344 19 ‘Unconventional Monetary Policies, with a Focus on Quantitative Easing’, European Journal of Economics and Economic Policies: Intervention , Edward Elgar, Cheltenham, UK and Northampton, MA, USA, 15 (2), 2018, 139–46 (with Brett Fiebiger) 359 PART VI A FINAL OVERVIEW 20 ‘Money, Credit and Central Banks in Post-Keynesian Economics’, in E. Hein and E. Stockhammer (eds), A Modern Guide to Keynesian Macroeconomics and Economic Policies , Edward Elgar, Cheltenham, UK and Northampton, MA, USA, 2011, 34–60 368 Index

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Book SynopsisPart of The Elgar Series on Central Banking and Monetary Policy, this book explores challenges surrounding central banking today. It goes beyond the immediate concerns with monetary policy and focuses instead on the concept of central banking more generally.Chapter authors explore emerging fields of central bank’s actions, discussing, for instance, how monetary policy can affect income distribution, how it has differentiated impacts according to gender, how it can help to deal with climate change, and how it can promote financial stability and structural change.Policy makers, academics and the financial press will all benefit from the insight in The Future of Central Banking.Trade Review‘Central banking is about the provision of the means of payment, and payment is, whether we like it or not, at the core of the organisation of modern society. Therefore it should not come as a surprise that central banking will have to evolve with society and has to take up its ever changing challenges. The authors of this unique book are thought leaders in the various fields in which central banking has to react or can lead change of the economy and society. For central bankers the book is a rich source of inspiration for the coming years.’ -- Ulrich Bindseil, European Central Bank‘Over the last half century, the art of central banking underwent a significant transformation: from a de facto broadly-defined social role that was bestowed on these publicly-mandated institutions of the early postwar era to conduct monetary policy, via the balancing of numerous social and economic concerns, into what became a single-minded dogma of inflation fighting. Through force majeure, the Great Financial Crisis of 2007-2008 and the COVID-19 crisis have shaken this dogma to its core, thereby slowly leading to a redefining of the role of central banks for the twenty-first century. This book is unique in offering readers a rigorous analysis of some of the most important new and exciting directions in the art of central banking, from a concern with gender and the functional and personal distribution of income and wealth to dealing with the climate/ecological crisis.’ -- Mario Seccareccia, University of Ottawa, Canada and International Journal of Political Economy‘Both well-established and bright young authors have contributed to The Future of Central Banking. The book covers topics about central banking that are usually left out of the literature but that are attracting a growing amount of attention, such as central banking and income distribution, central banking and gender, and central banking and ecological problems. Other chapters also provide an innovative approach to previously-discussed issues such as macroprudential policies or central bank independence and democracy.’ -- Marc Lavoie, University of Ottawa, Canada and University of Sorbonne Paris Nord (CEPN), FranceTable of ContentsContents: Introduction to The Future of Central Banking 1 Sylvio Kappes, Louis-Philippe Rochon and Guillaume Vallet 1 The general ineffectiveness of monetary policy or the weaponization of inflation 20 Louis-Philippe Rochon PART I CENTRAL BANKING AND INCOME DISTRIBUTION 2 Monetary policy and personal income distribution: a survey of the empirical literature 38 Sylvio Kappes 3 Inflation targeting regime and income distribution in emerging market economies 62 Lilian Rolim and Nathalie Marins 4 Monetary policy in the United States and its impact on the functional distribution of income: 1970–2015 84 Ivan Dario Velasquez PART II CENTRAL BANKING AND GENDER 5 Feminist macroeconomics and monetary policy 107 Elissa Braunstein 6 The necessary winds of change: empowering women in central banking 128 Guillaume Vallet PART III CENTRAL BANKING AND ECOLOGICAL CONCERNS 7 Contending views on the role of central banks in the age of climate change: a review of the literature 151 William Oman, Mathilde Salin and Romain Svartzman 8 Climate change, central banking and financial supervision: beyond the risk exposure approach 175 Yannis Dafermos 9 Central banking for a social-ecological transformation 195 Louison Cahen-Fourot PART IV CENTRAL BANKING, MACROPRUDENTIAL POLICIES AND FINANCIAL STABILITY 10 The relationship between central banks and financial regulation: a critique of the mainstream consensus and elements for a post-Keynesian approach 220 Esteban Pérez Caldentey 11 Macroprudential policy of central banks 249 Fábio Henrique Bittes Terra and Gustavo Chagas Goudard PART V CENTRAL BANKING AND STRUCTURAL CHANGE 12 Can monetary policy promote structural change? Analyzing the Brazilian experience from a new-developmental perspective 263 Cristina Helena Pinto de Mello and Paulo Robilloti 13 Currency hierarchy, inflation targeting and structural change: the Brazilian experience 290 Daniela Magalhães Prates, Carolina Troncoso Baltar and Rosângela Ballini 14 Central banks and democracy under long-term changes 316 Jocelyn Pixley PART VI CENTRAL BANKING INDEPENDENCE 15 Monetary policy committees at the Central Bank of West African States (BCEAO) and the Bank of the Central African States (BEAC) 337 Régis Bokino and Edwin Le Heron 16 Central bank independence from banks rather than governments 360 Sergio Rossi Index

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Book SynopsisThe global financial crisis of 2008 has shown the great dangers of a pronounced imbalance in the financial system. The numerous regulatory components of the global financial system all aim to increase the stability and transparency of the system and thereby restore the confidence of market participants in credit institutions. The requirements lead to considerable challenges for the market participants: structures have to be changed, business models have to be revised, systems have to be checked for their functionality. Stable Banks in Challenging Times is a collection of speeches delivered by Andreas Dombret during his eight-year tenure as a board member of the Deutsche Bundesbank, the German central bank, and also, from 2014 onwards, his term on the Supervisory Board of the European Central Bank. He also represented Germany at the G7, the G20, the IMF, the FSB, the Basel Committee, the OECD and the BIS. As witness to the challenges created by the global financial crisis of 2008, Andreas Dombret helped to shape large parts of the new regulatory framework. He successfully monitored future developments such as digitalization, Brexit and climate change, and their effects on the risk situation in the global banking industry. His insights are an invaluable look at the inner workings of global financial regulation and policy. Financial system academics and researchers as well as professionals in banking, the financial sector, central banking and bank supervision will gain perspective from the author's observations as they pertain both to the past and our future.Trade Review'A significant contribution to financial regulatory policy making and bank management benchmarking in uncertain times. Andreas Dombret, intellectual and straightforward, yet realistic and practical. As a member of our global advisory committee and a very good friend of mine, Andreas always offers me a great deal of wisdom and I find every time from him a unique combination of resolute direction as a policy maker and the practical and reasonable sense of a private practitioner. You will certainly find a perfect balance among various interests, both public and private, from these essays. Very timely publication of Andreas' holistic views and profound insights during his Bundesbank days.' --Makoto Takashima, President and CEO, Sumitomo Mitsui Banking Corporation, JapanTable of ContentsContents: Part l Financial Stability in a Globalised World 1. Securing financial stability: the contribution of economic policy 2. Rules and tools for capturing systemic risk 3. Could less be more? The role of finance for the economy 4. More painkillers, please? Why more finance is the wrong medicine for our growth problem 5. Under Pressure – Is Consolidation the Solution for Europe's Banking Sector? 6. Banking sector in uncertain times – a challenge for whom? 7. Banks navigating uncharted waters 8. How to manage financial crises from a systemic viewpoint 9. Financial systemic risk – The national and international dimension of macroprudential policy 10. Resilient banks – essential building blocks of a stable financial system 11. Shaken but not stirred? The banking system seven years after the crisis Part ll Supervision and Regulation in Europe and beyond 12. Moving together – one year of European banking supervision 13. Failing or likely to fail? Putting the European banking union to the test 14. Banks-allowing them to fail 15. European banking union – a construction site. Common supervision, common resolution, common deposit insurance scheme? 16. Trying to see in the dark – The challenge of financial regulation 17. Big bang banking union – What can we expect? 18. What is “good regulation”? 19. Cutting the Gordian Knot or splitting hairs? 20. The quest for stability – Regulating and supervising banks 21. The euro, the banks and the crisis – Reshaping the world of finance Part lll Basel III – Reflections on a major regulatory project 22. Are we done now? Reflections on the post-crisis supervisory and regulatory regime 23. Too little, too much, or just right? Reforming banking regulation after the financial crisis 24. Basel III – goal within sight 25. Where do we go from here? The future of US-EU financial relations following the finalisation of Basel III 26. Basel III – Are we done now Part lV Behind the curve? The Role of Climate Change in Banking Supervision 27. Behind the curve? The role of climate risks in banks’ risk management 28. Greener finance – better finance? How green should the financial world be? I. Opt in or opt out? The future of the European Union in light of Brexit 29. What does Brexit mean for European banks? 30. The possible impact of Brexit on the financial landscape. Speech delivered at zeb, London, 24 February 2017 31. The future relationship between Germany and the UK in finance after Brexit 32. We can work it out – or can we? Current challenges in Brexit talks 33. Living with fragmentation – Post-Brexit realities in financial services 34. How will Brexit change the map of global finance? II. Digitalisation – the most significant challenge for future banking 35. Digitalisation – repercussions for banks and their supervisors 36. Digital natives? The future of banking in an era of digitalisation 37. Banks spellbound by innovation? Lessons learnt from digitalisation 38. On the prospects of growing electronification in the capital markets 39. Banking on big data – Different policy issues? 40. Totally digital? The future of banking business III. Central Banking and the role of international cooperation 41. The Future of Global Economic Cooperation – Brexit, Basel III and Beyond 42. What’s the future of globalisation? What’s the future of free markets? European optimism in an uncertain world 43. A stairway to heaven? The promises and limits of global integration IV. Conclusion 44. Mediating between worlds – eight years at the Bundesbank

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Book SynopsisElgar Advanced Introductions are stimulating and thoughtful introductions to major fields in the social sciences, business and law, expertly written by the world’s leading scholars. Designed to be accessible yet rigorous, they offer concise and lucid surveys of the substantive and policy issues associated with discrete subject areas.Written by two expert economists, this comprehensive Advanced Introduction provides a thorough and up-to-date analysis of central banks and monetary policy, analysing the ways in which views about monetary policy have developed and changed.Key Features: Provides a historical overview of the gestation of the Bank of England, the Federal Reserve, and the European Central Bank Analyses the processes involved in monetary policymaking, including strategy reviews, policy instruments, and central bank communication, whilst considering financial stability and crisis management Concludes with a look towards the future challenges faced by central banks, including the low interest rate environment and the greening of central bank policies Accessible and informative, this Advanced Introduction will prove a vital resource to students and scholars of economics and finance. It will also prove invaluable to practitioners and policymakers interested in financial sector supervision and regulation in central banks.Trade Review‘By explaining central banking to a non-specialist audience, this book fills an important void. It convincingly demonstrates the tremendous importance that price and financial stability play in the lives of the citizens we serve, illustrated with concrete day-to-day policy challenges that central bankers face.’ -- Klaas Knot, President of De Nederlandsche Bank and Chair of the Financial Stability Board‘This concise volume is a stupendous achievement. It distills into a relatively small number of pages a wealth of factual information, and a bit of opinion, about central banking around the world. Invaluable. I plan to pull it off my bookshelf frequently and to assign sections to my students.’ -- Alan S. Blinder, Princeton University, US‘This excellent short book will be a boon to anyone wanting to learn the basics of modern central banking. It is nicely written, with a good use of diagrams and tables, and easily accessible to anyone with a modicum of understanding of macroeconomic and monetary issues.’ -- Charles Goodhart, London School of Economics, UKTable of ContentsContents: Introduction to Central Banks and Monetary Policy 1. Responsibilities and design of central banks 2. Monetary policy-making 3. Financial stability and crisis management 4. Challenges for central banks References Index

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Book SynopsisElgar Advanced Introductions are stimulating and thoughtful introductions to major fields in the social sciences, business and law, expertly written by the world’s leading scholars. Designed to be accessible yet rigorous, they offer concise and lucid surveys of the substantive and policy issues associated with discrete subject areas.Written by two expert economists, this comprehensive Advanced Introduction provides a thorough and up-to-date analysis of central banks and monetary policy, analysing the ways in which views about monetary policy have developed and changed.Key Features: Provides a historical overview of the gestation of the Bank of England, the Federal Reserve, and the European Central Bank Analyses the processes involved in monetary policymaking, including strategy reviews, policy instruments, and central bank communication, whilst considering financial stability and crisis management Concludes with a look towards the future challenges faced by central banks, including the low interest rate environment and the greening of central bank policies Accessible and informative, this Advanced Introduction will prove a vital resource to students and scholars of economics and finance. It will also prove invaluable to practitioners and policymakers interested in financial sector supervision and regulation in central banks.Trade Review‘By explaining central banking to a non-specialist audience, this book fills an important void. It convincingly demonstrates the tremendous importance that price and financial stability play in the lives of the citizens we serve, illustrated with concrete day-to-day policy challenges that central bankers face.’ -- Klaas Knot, President of De Nederlandsche Bank and Chair of the Financial Stability Board‘This concise volume is a stupendous achievement. It distills into a relatively small number of pages a wealth of factual information, and a bit of opinion, about central banking around the world. Invaluable. I plan to pull it off my bookshelf frequently and to assign sections to my students.’ -- Alan S. Blinder, Princeton University, US‘This excellent short book will be a boon to anyone wanting to learn the basics of modern central banking. It is nicely written, with a good use of diagrams and tables, and easily accessible to anyone with a modicum of understanding of macroeconomic and monetary issues.’ -- Charles Goodhart, London School of Economics, UKTable of ContentsContents: Introduction to Central Banks and Monetary Policy 1. Responsibilities and design of central banks 2. Monetary policy-making 3. Financial stability and crisis management 4. Challenges for central banks References Index

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Book SynopsisThis thought-provoking book investigates the political and economic transformation that has taken place over the past three decades in Central, Eastern and Southeastern Europe (CESEE) since the fall of the Iron Curtain. Through an examination of both the successes and shortcomings of post communist reform and the challenges ahead for the region, it explores the topical issues of economic transition and integration, highlighting important lessons to be learned. Featuring contributions from both top academics and experienced policymakers, 30 Years of Transition in Europe first discusses the process of transition in CESEE from a historical perspective, analysing the impacts of differing approaches on economic and monetary policy, the role of central banks and the speed of reform in various countries of the region. Chapters also compare CESEE transformations to emerging economies in Asia, and examine contemporary concerns around financial and monetary stability, as well as exploring the long-term determinants of economic growth such as digitalization, climate change and demographic trends. Economists, central bankers, and policymakers in the banking sector and other international financial organizations will find this book an enlightening read. It will also be useful for academics in economics and politics with a particular interest in emerging European economies and European integration.Trade Review‘I highly recommend the scholars and observers of contemporary world to take a look at this book, not in a pick-and-match manner by chapters, but the volume as a whole.’ -- Tom Hashimoto, Eurasian Geography and EconomicsTable of ContentsContents: Preface PART I A historic transformation: heterogeneity in CESEE in a changing global context 1 Looking back on 30 years of transition – and looking 30 years ahead Robert Holzmann 2 1989: the year of the great ambivalence Anton Pelinka 3 The price of unity: the transformation of Germany and Eastern Europe after 1989 Philipp Ther PART II A central banker’s view on monetary policy during transition 4 Monetary policy challenges during transition: the case of Serbia Jorgovanka Tabaković and Ana Ivković 5 Monetary milestones of the past 30 years: the Czech National Bank’s view Jiří Rusnok 6 Croatia – from hyperinflation to the road to the euro area Boris Vujčić and Katja Gattin Turkalj PART III Modes of transition: the impact of different economic policy approaches 7 Ten lessons from thirty years of post-communist economic transformation Anders Åslund 8 The impact of different transition patterns and approaches on economic development in EU-CEE11, Russia and Ukraine Marina Gruševaja 9 Central, Eastern and Southeastern Europe’s reunion with Europe Andrzej Sławiński PART IV Lessons from three decades of catching-up in Asia 10 Catching-up in Central and Eastern Europe and East Asia – commonalities and differences Michael A. Landesmann 11 Chinese multinationals in East Central Europe: structural, institutional or political considerations? Ágnes Szunomár PART V Challenges for CESEE’s near future: monetary and financial stability 12 Did macroprudential policies play a role in stabilizing the credit and capital flow cycle in CESEE? Markus Eller, Helene Schuberth and Lukas Vashold 13 30 years of monetary and exchange rate regimes in Central and Eastern Europe: what has changed, and what is next? Johannes Wiegand PART VI The future of CESEE: the impact of megatrends 14 At the start of a new leadership of the European Commission and the European Central Bank: where is the place of Central and Eastern Europe? Martin Selmayr 15 Will the EU overcome the East-West divide? Ada Ámon 16 Demographic change in Central, Eastern and Southeastern Europe: trends, determinants and challenges Tomáš Sobotka and Alexia Fürnkranz-Prskawetz 17 The demographic challenge of Eastern Europe and potential policy options Mario Holzner Index

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Book SynopsisStudents in economics are ever more distressed by the disconnect between mainstream economics and the real world. This book shows how post-Keynesian economics constitutes a coherent heterodox alternative, based on realistic assumptions and the integration of the financial and real sides of the economy, with an emphasis on the many paradoxes that arise in a truly macroeconomic analysis.The book is a considerably revised and updated version of the widely used and frequently cited 2014 edition. It provides a comprehensive account of post-Keynesian theory and policy. Topics covered include its methodological foundations, consumer theory and choice under fundamental uncertainty, firms and pricing, money and credit, effective demand and employment, growth theory, open-economy issues, inflation theory. It also links with ecological economics. Scholars of economics, particularly post-Keynesian and heterodox economists, will find this comprehensive look at the field a necessary addition to their libraries, while students and instructors will find it a perfect text for any class on post-Keynesian economics.Trade ReviewWinner of the EAEPE Myrdal Prize (now the Joan Robinson Prize)‘Marc Lavoie’s thoroughly revised Post-Keynesian Economics provides an irrefutable critique of mainstream economics, which is becoming ever more recondite and irrelevant. But the book does much more, offering the clear prospect of an intellectual renewal of both micro- and macroeconomics, firmly founded on realistic assumptions relevant for a world of fundamental uncertainty and integrating finance and the real economy. Lavoie’s Post-Keynesian Economics, unparalleled in its coverage of establishment and post-Keynesian micro- and macroeconomics, is a work of lasting importance. An amazing feat.’ -- Servaas Storm, Delft University of Technology, the NetherlandsAcclaim for the first edition:‘I am delighted to have been invited to present a discussion of Marc Lavoie’s Post-Keynesian Economics: New Foundations. I was contemplating whether to give my short review, “it’s a brilliant book, you must buy it”, or my longer and more considered review, “it’s a brilliant book, you must buy it and I wish I had written it!” . . . It is a book every economist should have on his (or her) shelf, placed within easy reach.’ -- John McCombie, European Journal of Economics and Economic Policies: InterventionTable of ContentsContents: Notation used in the book Preface to the Second Edition 1. Essentials of heterodox and post-Keynesian economics 2. Theory of choice 3. Theory of the firm 4. Credit, money and central banks 5. Effective demand and employment 6. Accumulation and capacity 7. Open-economy macroeconomics 8. Inflation theory 9. Concluding remarks References Index

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Book SynopsisThis volume contains thirty-seven contributions from the most significant early developers of monetary economics. Starting with Aristotle, the collection tracks the development of the modern theory of money through the ages by thinkers like Thomas Aquinas, Martin de Azpilcueta, John Locke, Richard Cantillon, David Hume, and A.R.J Turgot. Also included are the first translations of Jean Buridan's writings on money and of Albert the Great's writings on money from Latin. A Source Book on Early Monetary Theory will be of interest to bankers, historians, and macroeconomists and can be used as a supplementary text on courses in macroeconomics, money and banking, and the history of economic thought.Trade Review'Edward Fuller's convenient anthology of contributions to monetary economics by thirty writers before Adam Smith, from Aristotle to Hume and Condillac, will be greatly appreciated by anyone interested in the origins and development of monetary economics. Many of these important writings were previously difficult of access. Now it is easy, and enjoyable, to peruse in a single book the long and rich heritage of monetary analysis in the two millennia from Aristotle to Adam Smith.' -- Robert W. Dimand, Brock University, Canada'A timely book. Edward Fuller leads us back to the intellectual sources of sound thinking on money. His anthology is essential reading in an age of monetary insanity.' -- Guido Hulsmann, Universite d'Angers, France'Money has been making the world go 'round since ancient times. This volume , dealing with monetary thought from Aristotle to Condillac, provides, in one place, an excellent source of and easy access to the ideas of pre-Smithian monetary theorists, including translations of key writings. It should have a prominent place on the bookshelf of professional economists and advanced students alike.' -- Warren Young, Bar Ilan University, Israel and Carnegie-Mellon University, US'It is very useful to have in one volume the highlights of pre-Smithian European monetary theory, including some selections translated into English for the first time. The volume begins with Aristotle's influential (if theoretically dubious) remarks on money, followed by important commentaries they inspired from Albertus Magnus, Thomas Aquinas, and Jean Buridan. Next come choice selections from the brilliant medieval writer critic of debasement, Nicholas Oresme, and from several thoughtful Spanish scholastics including Juan de Mariana. Relevant monetary extracts from the early modern writers Grotius, Pufendorf, Locke, and Cantillon follow. The volume winds up with Scottish and French Enlightenment figures like Hutcheson, Hume, Turgot, and Condillac. Altogether this collection is a welcome resource for teachers and students of monetary history and the history of economic thought.' -- Lawrence H. White, George Mason University, USTable of ContentsContents: Foreword by Jesús Huerta de Soto vii Foreword by Joseph T. Salerno viii 1 Introduction: The Aristotelian Monetary Tradition 1 Edward W. Fuller 2 Aristotle: Nicomachean Ethics (c. 350 BC) 8 3 Aristotle: Politics (c. 350 BC) 11 4 Albert the Great: Commentary on Aristotle’s Nicomachean Ethics (c. 1262) 14 5 Albert the Great: Commentary on Aristotle’s Politics (c. 1263) 21 6 Thomas Aquinas: Commentary on Aristotle’s Nicomachean Ethics (c. 1271) 29 7 Thomas Aquinas: Commentary on Aristotle’s Politics (c. 1272) 34 8 Peter John Olivi: A Treatise on Contracts (c. 1295) 41 9 Jean Buridan: Commentary on Aristotle’s Nicomachean Ethics (c. 1336) 47 10 Jean Buridan: Commentary on Aristotle’s Politics (c. 1349) 54 11 Nicholas Oresme: Treatise on Money (1358) 70 12 Gabriel Biel: On the Power and Utility of Moneys (1495) 89 13 Copernicus: Essay on the Coinage of Money (1526) 96 14 Luís Saravia de la Calle: Instructions for Merchants (1544) 103 15 Martín de Azpilcueta: On Exchange (1556) 105 16 Tomás de Mercado: Manual of Deals and Contracts (1569) 113 17 Sir Thomas Smith: A Discourse of the Commonweal of this Realm of England (1581) 114 18 Francisco García: A Very General and Useful Treatise on Contracts (1583) 120 19 Bernardo Davanzati: A Discourse upon Coins (1588) 123 20 Luís de Molina: A Treatise on Money (1597) 132 21 Leonard Lessius: On Buying and Selling (1605) 134 22 Juan de Mariana: A Treatise on the Alteration of Money (1609) 137 23 Hugo Grotius: The Rights of War and Peace (1625) 168 24 Samuel Pufendorf: The Elements of Universal Jurisprudence (1660) 171 25 Samuel Pufendorf: The Whole Duty of Man (1673) 174 26 John Locke: Some Considerations of the Consequences of the Lowering of Interest, and Raising the Value of Money (1691) 177 27 Dudley North: Discourses upon Trade (1691) 194 28 Isaac Gervaise: The System or Theory of the Trade of the World (1720) 206 29 Richard Cantillon: An Essay on Economic Theory (1730) 217 30 Jacob Vanderlint: Money Answers All Things (1734) 244 31 Francis Hutcheson: Philosophiae Moralis Institutio Compendiaria (1747) 246 32 Ferdinando Galiani: On Money (1751) 248 33 David Hume: Of Money (1752) 260 34 David Hume: Of Interest (1752) 267 35 David Hume: Of the Balance of Trade (1752) 274 36 Joseph Harris: An Essay upon Money and Coins (1757–58) 283 37 A.R.J. Turgot: Reflections on the Formation and Distribution of Wealth (1766) 289 38 Étienne Bonnot de Condillac: Commerce and Government Considered in Their Mutual Relationship (1776) 296 Index 310

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Book SynopsisThis book presents a quarter of a century of empirical research on interest rates and a variety of asset prices. It will serve to deepen our understanding of asset price inflation. The book includes extensive analysis of the measurement of interest rates, with case studies from The Netherlands, Belgium and EMU, and emphasizes statistical measurement and the attempt to understand interest rate behaviour through statistical estimation. The book also includes an examination of historical interest rate development in the long run, both theoretically and empirically. In conclusion, Professor Fase also analyses the behaviour of bonds, stocks and investment in art and examines the factors indispensable for a monetary strategy designed to target inflation.Table of ContentsContents: Introduction Part I: On Interest Rates 1. A Principal Components Analysis of Market Interest Rates in The Netherlands, 1962–1970 2. The Interdependence of Short-term Interest Rates in the Major Financial Centres of the World 3. On Interest Rates in Belgium and The Netherlands 4. International Convergence of Capital Market Interest Rates 5. Bond Yields and Expected Inflation 6. Anticipated Inflation and Interest Rates in an Open Economy 7. The Fisher Hypothesis and Exchange Rates in EMU 8. The Demand for Mortgage Credit and the Mortgage Rate in The Netherlands 9. Seventy Years of Interest Rates Part II: On Asset Prices 10. Index-linked Bonds and Inflation Risk in EMU 11. Price Determination on the Equity Market 12. The Linkage of Stock Exchange Markets Between Countries 13. The Interaction Between Trading Volume of Stocks and Options 14. The Equity Premium Puzzle 15. The Risk Premium on Equity in Core EMU 16. Purchase of Art Bibliography Index

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Book SynopsisThis outstanding collection of Michael Brennan's writing spans almost thirty years and reflects the rapid development and growing importance of the field of finance over this period.The papers cover corporate finance, option pricing and derivative markets, international finance and the role of information in financial markets. The chapters on corporate finance include Brennan's seminal 1970 paper on the effects of personal taxation on financial market equilibrium, an analysis of consistency in utility rate regulation and the classic piece on the application of options analysis to natural resource investments. The chapters on option pricing range from the earliest analysis of the American put option to a synthesis of methods of valuing derivatives, portfolio insurance and the effect of derivatives on trading volume and welfare. More recent papers include empirical asset pricing studies and an innovative proposal to strip the dividends from the S&P500 portfolio.Michael Brennan has been at the forefront of recent developments in financial economics and financial management and this collection of his work will be warmly welcomed by those working in finance, monetary economics, banking and financial sector research.Table of ContentsContents: Introduction Part I: Corporate Finance Part II: Option Pricing and Derivatives Markets Part III: Information and Price Formation in Financial Markets Name Index

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Book SynopsisCurrency Crises, Monetary Union and the Conduct of Monetary Policy is a book of debate and analysis by some of the world's most eminent economists, on problems relating to the international monetary system, economic growth and monetary policy.This highly readable book features contributions from illustrious scholars including four Nobel laureates in economics - Milton Friedman, Franco Modigliani, Paul A. Samuelson and James Tobin. They hold a lively discussion on the impact of monetary policy on economic growth, unemployment and inflation, in both developing and developed countries. The authors also examine the effects of European Monetary Union on the international monetary system and whether this union will survive to include more than just a few founding countries. In addition, the assembled experts investigate the conditions that lead to currency crises in developing countries and propose policies that can be used to combat such crises. This impressive volume is a lightly-edited chronicle of a vigorous debate among leading economists, and contains an introduction that puts the discussions in context.This accessible and thought-provoking volume will be of interest to specialists in international monetary economics, and to undergraduate and graduate students, and members of the general public who seek a clearer understanding of current economic issues and solutions to economic problems.Table of ContentsForeword by Robert A. Mundell, Winner of the 1999 Nobel Prize in Economics Contents: Foreword 1. Introduction 2. Problems of the US Economy 3. Taxation, Employment and the Federal Reserve 4. European Monetary Union, the Dollar and the International Monetary System 5. The Outlook for Economic Growth in the Developed World 6. The Monetary Crisis in Mexico 7. Policies to Combat Monetary Crises in Developing Countries 8. A Poll and Closing Remarks 9. The Lord Robbins Memorial Lecture: European Monetary Union: What can we Learn from the United States? Index

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Book SynopsisThis important book tackles the problem of inflation in contract law - whether, and to what extent, contract rules should take inflation into account.The book offers an original approach in proposing that the distributive effects of inflation are an important factor in the design of contract rules. The author also finds that the wealth distribution caused by inflation is relevant to the design of contract rules whichever normative perspective of the contract law one adopts. The book draws theoretical and practical implications of the analysis and suggests that different starting points will result in different solutions. Inflation and the Enforcement of Contracts is essential to anyone interested in research or policy making in the area of contract law.Table of ContentsContents: Introduction 1. The Experience of Different Legal Systems with the Enforcement of Contracts during Inflation 2. Economic Analysis 3. The Distributional Approach to Contract Law 4. A Comparison of Economic Analysis of Contract Law and the Distributional Approach to Contract Law 5. The Institutional Competence of Judicial and Legislative Bodies to deal with Enforcement during Inflation Conclusions Bibliography Index

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Book SynopsisThe introduction of a single currency within the European Union in its present form is without precedent in world history and will have far-reaching consequences for the future prosperity of the continent.Economic and Monetary Union in Europe brings together contributions from leading specialists which explain and evaluate the most important implications of economic and monetary union. The book examines theoretical aspects of monetary integration, illustrates the historical lessons to be learned from these and discusses the resulting policy consequences.This book will be essential reading for undergraduates studying European monetary integration and will prove to be a key source of reference for academics and post graduates working in this area.Table of ContentsContents: Preface 1. European Economic Integration Part I: Theoretical Considerations of EMU 2. Monetary Integration: The Intellectual Pre-history 3. Policy Challenges under EMU Part II: Historical Precedents 4. Historical Experience with Monetary Unions: The Case of Scandinavia 1875–1914 5. German Monetary Union and the Lessons for EMU Part III: Policy Consequences of a Single Currency 6. Monetary Regimes, Collective Fiscal Retrenchment and the Political Economy of EMU 7. Economic and Monetary Union and the European Community Budget 8. EMU: Monetary Policy Issues and Challenges Part IV: The Impact Upon External Relations 9. The Euro and the Stabilisation of the Eastern European Economy 10. EMU and the Rest of the World: Thinking About the Effects on the Real Economy Index

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Book SynopsisThis seminal reference tool provides a detailed chronological account of the development of European integration from the fragmentation at the end of the Second World War to the launch of the Euro on 31st December 1998. It offers a descriptive summary of important events, measures, arrangements, conferences and ideas that shaped the progress towards integration.Wim Vanthoor's chronology reveals that the attainment of political unions referred to by Winston Churchill in 1946 as 'The United States of Europe', was on the one hand a controversial point in the struggle for integration while on the other it was always kept in view as the ultimate objective. The author comes to the conclusion that with the creation of the economic and monetary union the efforts to achieve European political unification have reached an interim phase. Previous experience suggests that, in the long run, the European Union needs to be deepened in order to create the supranationality which the founding fathers of the European Community already had in mind when they signed the Treaty of Rome in 1957.This reference work will prove invaluable to students, scholars and professionals interested in the development of the European Union.Trade Review'This reference work should prove invaluable to students, academics and professionals interested in the development of the European Union.' -- European Access'The chronology focuses on conferences, discussions, ideas, and concepts that were major steps toward integration, and it describes major milestones and events. The entries are thorough and well written.' -- P.W. Wilkin, ChoiceTable of ContentsContents: Preface Introduction Chronology 1946–1998 Index

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Book SynopsisThe widespread capital market liberalisation has resulted in a massive surge in international capital flows and the development of a more integrated world financial system. At the same time, however, the volatility of capital flows has increased and the stability of this modern financial system has been called into question by a number of financial and currency crises. In this volume the editors assess the behaviour of international capital markets during this period, focusing on both the causes and the consequences of financial instability. They examine the origins of the Latin American and East Asian crises and the lessons that can be drawn from these, and they consider the proposals for reform of the international financial system which have followed. This collection of papers, written by both academics and practitioners, is addressed both to specialists and to a wider audience, and will provide insight into an extremely important global development.Table of ContentsContents: Acknowledgements Introduction Gregor Irwin and David Vines PART I CAPITAL FLOWS AND FINANCIAL INSTABILITY 1. Andrew Crockett (1997), ‘Why is Financial Stability a Goal of Public Policy?’ 2. Kenneth Rogoff (1999), ‘International Institutions for Reducing Global Financial Instability’ 3. Stijn Claessens, Michael P. Dooley and Andrew Warner (1995), ‘Portfolio Capital Flows: Hot or Cold?’ 4. Richard Portes and David Vines (1997), Coping with International Capital Flows PART II THE MEXICAN CRISIS 5. Guillermo A. Calvo and Enrique Mendoza (1996), ‘Petty Crime and Cruel Punishment: Lessons from the Mexican Debacle’ 6. Jeffrey Sachs, Aaron Tornell and Andrés Velasco (1996), ‘The Collapse of the Mexican Peso: What Have We Learned?’ 7. Morris Goldstein and Guillermo A. Calvo (1996), ‘What Role for the Official Sector?’ 8. Andrew Crockett (1996), ‘Lessons from the Mexican Crisis’ PART III THE EAST ASIAN CRISIS 9. Paul Krugman (1998), ‘What Happened to Asia?’ 10. Steven Radelet and Jeffrey D. Sachs (1998), ‘The East Asian Financial Crisis: Diagnosis, Remedies, Prospects’ 11. Giancarlo Corsetti, Paolo Pesenti and Nouriel Roubini (1999), ‘What Caused the Asian Currency and Financial Crisis?’ 12. Jenny Corbett, Gregor Irwin and David Vines (1999), ‘From Asian Miracle to Asian Crisis: Why Vulnerability, Why Collapse?’ 13. Paul Krugman (1999), ‘Analytical Afterthoughts on the Asian Crisis’ PART IV THE LESSONS OF THE 1990s 14. D. Brealey (1999), ‘The Asian Crisis: Lessons for Crisis Management and Prevention’ 15. Amar Bhattacharya and Marcus Miller (1999), ‘Coping with Crises: Is There a "Silver Bullet"?’ 16. Stanley Fischer (1999), ‘Reforming the International Financial System’ 17. Morris Goldstein (1998), ‘Halifax II Reforms’ 18. Joseph Stiglitz (1999), ‘Must Financial Crises Be This Frequent and Painful?’ Name Index

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Book SynopsisThis book examines the monetary integration of the group of countries which constitute the Economic and Monetary Union (EMU), signalling the emergence of a truly European economy. The authors devote their considerable expertise to the analysis of macroeconomic policies within EMU and the economic analysis underlying the conduct of these policies.The authors first analyse the development of the euro area from a historical perspective. They then examine the criteria for the first eleven countries to qualify for EMU and speculate whether the same countries would have joined if the qualification date had been a year later. The authors go on to examine purely macroeconomic aspects of the euro area including: the degree of real convergence in the euro area the short-run and long-run determinants of the euro area's current account the euro area's financial markets and implications for the international role of the euro the organizational structure and internal procedures of the European System of Central Banks the Eurosystem's single monetary policy strategy fiscal policy and the Stability and Growth Pact exchange rate policy issues. This book will become required reading for scholars and policymakers in the area's of European studies, macroeconomic policy and financial economics.Table of ContentsContents: Preface Part I: The Road to EMU Part II: Analysis of the Euro Area Part III: Policy and Institutions References Index

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Book SynopsisThis book presents Martin Shubik's important contribution to the development of game theory, and shows how game theory methods can be used in the study of prices, money and financial institutions.After introducing the reader to his career and the influences which developed his research, Professor Martin Shubik addresses the price system considering issues such as competitive equilibrium, economic exchange and production. He explores the competitive price system and the emergence of money and financial systems to develop a theory of monetary and financial institutions. Specifically, he examines the role of money in the economy using both cooperative and non-cooperative solutions in game theory. Throughout the book Martin Shubik stresses that the value of games, which can be both played and analysed, provides an important link between theory and process and institutional studies.This book will be welcomed by economists, especially those interested in game theory, as well as by money and banking professionals.Trade Review'Martin Shubik has been one of the great pioneers in the application of game theory to economic problems. His work sheds considerable light on fundamental institutions such as the price system and money.' -- Eric Maskin, Harvard University, US'The two volumes of the Selected Essays of Professor Shubik present a recognizably most valuable collection. The earlier publication of Shubik's book Game Theory in the Social Sciences was very much appreciated and won the Lanchester Prize of the Operations Research Society of America. This illustrates how the work of Martin Shubik connects ideas, precision, and methods of mathematics with a real understanding of what are the relevant issues which make an otherwise generic scientific question indeed a question of economic interest and significance (and the same can be said a little more broadly with 'the social sciences' replacing economics). The volumes are of interest because the papers that are included are well-chosen and in particular include interesting collaborations of Shubik with co-authors such as Dubey and Shapley.' -- John Nash, Princeton University, US'Game theory is now a mainstay of a wide range of disciplines within economics and elsewhere. The credit for recognizing its potentiality belongs to a small group of dedicated researchers, of whom one of the liveliest and most influential is Martin Shubik. These essays are a testament to his remarkable insight.' -- Ken Binmore, University College London, UKTable of ContentsContents: Introduction Part I: The Price System Part II: The Theory of Money and Financial Institutions Index

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Book SynopsisThe formulation of a common European monetary policy offers an important challenge to policymakers both in Europe and around the globe. The analysis of monetary transmission mechanisms in Europe, and the US, provides insights of great importance as the institutional environment of monetary policy changes.Historically, it has been proved difficult to empirically establish the effects of monetary policy measures on the economy. This study of the monetary transmission mechanism pays close attention to the role of financial markets in the transmission process. The author analyses aspects of monetary transmission, such as interest rates and exchange rates, with evidence from several European countries including the Netherlands, UK and Germany as well as from the US. This research on monetary transmission greatly increases our understanding of the effect, or ineffectiveness, of monetary policy on economies in general.The author presents a comprehensive discussion of the outcomes of empirical research along with an extensive survey of the literature and a discussion of the methods used, since interest in the subject was renewed in the 1980s. This work will be invaluable to policymakers in central banks and government ministries as well as academic researchers and economists alike.Trade Review'I can fully recommend this book to those interested in the transmission process of monetary policy.'Table of ContentsContents: 1. Introduction 2. A Survey of the Literature 3. Monetary Policy in a Small Open Economy 4. Monetary Policy and Bank Lending in the Netherlands 5. Characteristics of the Dutch Credit Market 6. Monetary Transmission and Business Cycle Asymmetry 7. Asymmetric Effects of Monetary Policy 8. Summary and Conclusions A. Data B. Innovation Analysis References Index

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Book SynopsisPotential new entrants to the European Union from Central and Eastern European countries face many challenges to achieve financial convergence with the existing EU nations. Using detailed case studies from Bulgaria, the Czech Republic, Latvia, Lithuania and Poland and analysis of cross country data from these regions, Financial and Monetary Integration in the New Europe looks at the key issues for applicant countries as they negotiate the terms of their membership in the European Union.Of major concern to these countries is the financial sector and its implications for economic growth and the conduct of macroeconomic policy. The book examines, in particular, monetary and exchange rate policies, banking regulation and financial market efficiency. The overall impact of building a market driven financial system on economic development is also explored. This volume illustrates that overall, transition countries have made great strides in transformation to market economies and that most have experienced significant economic growth. However, there is still some institution building to be completed and outstanding policy issues to be resolved.Financial and Monetary Integration in the New Europe will be of great interest to EU and CEE policymakers and will prove useful reading to those concerned with EU expansion and CEE economic development.Table of ContentsContents Preface and acknowledgements 1 Financial integration between the EU and the economies of Central and Eastern Europe: an overview David G. Dickinson and Andrew W. Mullineux PART I MONETARY AND EXCHANGE RATE POLICY 2 Monetary policy and economic development in transitional economies Maxwell J. Fry 3 The Czech approach to inflation targeting Miroslav Hrncÿ’rÿ and Katerÿina Sÿm’dkov‡ 4 The link between FEER and fiscal policy in a transitional period: the case of the Czech economy Katerÿina Sÿm’dkov‡ 5 Interest rate policy and inflation behaviour in the Czech Republic: from exchange rate to inflation targeting Eric Girardin and Nicholas Horsewood 6 Latvia on the way to the European Union: economic policy convergence Inna Sÿteinbuka 7 Monetary policy prospects and Maastricht criteria in Lithuania before accession to the EU Salomeúja Jasinskaiteú, Dalia Vidickieneú and Rasa Melnikieneú 8 The currency board regime in Bulgaria and its sustainability Tatiana Houbenova 9 EMU convergence criteria and international flows of capital: the dilemmas for Polish macroeconomic policy Boguslaw Grabowski and Jerzy Pruski 10 The Asian financial crisis and lessons for CEE economies David G. Dickinson and Andrew W. Mullineux 11 Joining EMU as an irreversible investment David G. Dickinson and Jean-Baptiste Desquilbet PART II FINANCIAL SECTOR DEVELOPMENT 12 Financial stability and economic development in transitional economies Maxwell J. Fry 13 Payment systems and economic development in transitional economies Maxwell J. Fry 14 Mobilization of savings in transition countries: the case of Lithuania Dalia Vidickieneú, Salomeúja Jasinskaiteú and Rasa Melnikieneú 15 The Polish banking sector and EU regulations Andrzej Raczko 16 Banking sector restructuring and debt consolidation in the Czech Republic Roman Matousÿek 17 Market efficiency in transition economies: equity markets and EU accession Nicholas Horsewood and Douglas Sutherland 18 Risk and optimal interest margins: the case of commercial banks in Central Europe Daniel Goyeau, Alain Sauviat and Amine Tarazi 19 The impact of market structure and efficiency on bank profitability: an empirical analysis of banking industries in Central and Eastern Europe CŽline Gondat-Larralde and Laetitia Lepetit 20 Convergence between the financial systems of EU member states and applicant transition economies Victor Murinde, Juda Agung and Andrew W. Mullineux Index

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Book SynopsisMoney, Coordination and Prices explains the phenomenon of nominal price rigidity as a characteristic of a monetary economy by means of an innovative combination of insights, using several strands of economic thought, to analyse the monetary economy. The work connects neoclassical and New Keynesian explanations of the use of money and nominal price rigidity and provides heterodox analyses of the two phenomena. The author integrates the mainstream approach with views from institutional and evolutionary economics, as well as post Keynesian economics.Analyses include: theories of money and nominal price stickiness conventions and institutions in coordination problems trust in a monetary economy the stability of the monetary economy the monetary economy as an open self-organizing system. This book will appeal to institutional, monetary, post Keynesian and neoclassical/mainstream economists and academics alike.Trade Review'This book presents a view of the economy, and how to model it, in which the current "ideal" of isolated agents coordinated by clearing markets is replaced by an open system in which money, trust, conventions and institutions all play their part in the system's coordination. In this framework, sticky prices and wages are not aberrations or market failures but are central to how the system works. In an open system, equilibrium is replaced by stability, the system's capacity to absorb shocks. How refreshing!' -- Victoria Chick, University College London, UKTable of ContentsContents: Theorising in Economics 1. Introduction 2. Theories of Money 3. Theories of Nominal Price Stickiness 4. Conventions and Institutions in Coordination Problems 5. Trust in a Monetary Economy 6. Stability of the Monetary Economy 7. The Monetary Economy: Leaving Behind the Closed System 8. Summing Up: Money and Nominal Price Stickiness References Index

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Book SynopsisDue to financial market imperfections it is imperative to analyse the relationship between financial structure and the monetary policy transmission process in Europe to effectively design and implement European monetary policy.Focusing on the years 1980-1995 and providing empirical evidence for six European countries, namely Germany, France, Italy, the UK, Belgium and the Netherlands, the author discusses whether cross-country variations in financial structure have a systematic relationship with inter-country differences in the monetary transmission process. The analysis of this is invaluable as differences in financial structures across EMU countries may hamper the implementation of a common European monetary policy in the future. The conclusion is that some elements of the financial structure are clearly relevant and applicable for European monetary policy and the monetary transmission process in particular. This highly topical book will be of great interest to academics and professional economists in the field of financial, macro and monetary economics and the economics of European integration.Trade Review'I can fully recommend this book to those interested in the transmission process of monetary policy.' -- Harry Garretsen, De EconomistTable of ContentsContents: Introduction 1. Financial Structure: Theories and Stylized Facts for Six EU Countries 2. Credit and Asymmetric Effects of Monetary Policy in Six EU Countries: An Overview 3. Off-Balance-Sheet Activities in Europe: Empirical Evidence from Bank-Level Panel Data 4. Banks and Monetary Transmission in Europe: Empirical Evidence 5. Credit Channels in Europe: A Cross-Country Investigation 6. Consumption and External Finance Premium in Europe: An Empirical Analysis 7. Summary and Conclusions Bibliography Index

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Book SynopsisThe last two decades have seen a number of important developments in exchange rate economics, with substantial contributions to both its theory and empirics. While our understanding of exchange rates has significantly improved, a number of challenges and open questions in the exchange rate debate still remain. In these two volumes, the editors have brought together a selection of key articles which are representative of recent developments in the exchange rate economics literature. This important collection is essential for academic economists and practitioners interested in understanding and participating in the exchange rate debate.Trade Review'Sarno and Taylor have created a book that is sure to be in the library of all serious scholars of exchange rates. The authors are to be commended for distilling such a fine collection of major works from the voluminous literature on the subject.' -- Michael Melvin, Arizona State University, USTable of ContentsContents: Volume I Acknowledgements Preface Lucio Sarno and Mark P. Taylor Introduction Lucio Sarno and Mark P. Taylor PART I GROUNDWORK 1. Mark P. Taylor (1995), ‘The Economics of Exchange Rates’ PART II EXCHANGE RATE THEORY 2. Bernard Dumas (1992), ‘Dynamic Equilibrium and the Real Exchange Rate in a Spatially Separated World’ 3. Maurice Obstfeld and Kenneth Rogoff (1995), ‘Exchange Rate Dynamics Redux’ 4. Maurice Obstfeld and Kenneth Rogoff (2000), ‘New Directions for Stochastic Open Economy Models’ 5. Philip R. Lane (2001), ‘The New Open Economy Macroeconomics: A Survey’ PART III EMPIRICAL EXCHANGE RATE MODELLING AND TESTING 6. Charles Engel and James D. Hamilton (1990), ‘Long Swings in the Dollar: Are They in the Data and Do Markets Know It?’ 7. Marianne Baxter (1994), ‘Real Exchange Rates and Real Interest Differentials: Have We Missed the Business-Cycle Relationship?’ 8. Richard Clarida and Jordi Gali (1994), ‘Sources of Real Exchange-Rate Fluctuations: How Important Are Nominal Shocks?’ 9. Martin Eichenbaum and Charles L. Evans (1995), ‘Some Empirical Evidence on the Effects of Shocks to Monetary Policy on Exchange Rates’ 10. Robert P. Flood and Andrew K. Rose (1995), ‘Fixing Exchange Rates: A Virtual Quest for Fundamentals’ 11. David H. Papell (1997), ‘Cointegration and Exchange Rate Dynamics’ 12. Mark P. Taylor and David A. Peel (2000), ‘Nonlinear Adjustment, Long-run Equilibrium and Exchange Rate Fundamentals’ PART IV TARGET ZONES 13. Paul R. Krugman (1991), ‘Target Zones and Exchange Rate Dynamics’ 14. Robert P. Flood and Peter M. Garber (1991), ‘The Linkage between Speculative Attack and Target Zone Models of Exchange Rates’ 15. Marcus Miller and Paul Weller (1991), ‘Exchange Rate Bands with Price Inertia’ 16. Giuseppe Bertola and Ricardo J. Caballero (1992), ‘Target Zones and Realignments’ 17. Bernard Dumas and Lars E.O. Svensson (1994), ‘How Long Do Unilateral Target Zones Last?’ 18. Matteo Iannizzotto and Mark P. Taylor (1999), ‘The Target Zone Model, Non-linearity and Mean Reversion: Is the Honeymoon Really Over?’ PART V CURRENCY CRISES 19. Paul Krugman (1979), ‘A Model of Balance-of-Payments Crises’ 20. Maurice Obstfeld (1994), ‘The Logic of Currency Crises’ 21. Maurice Obstfeld (1996), ‘Models of Currency Crises with Self-fulfilling Features’ 22. Olivier Jeanne (1997), ‘Are Currency Crises Self-fulfilling? A Test’ 23. Robert Flood and Nancy Marion (1999), ‘Perspectives on the Recent Currency Crisis Literature’ 24. Lucio Sarno and Mark P. Taylor (1999), ‘Moral Hazard, Asset Price Bubbles, Capital Flows, and the East Asian Crisis: The First Tests’ Name Index Volume II Acknowledgements A preface and introduction by the editors to both volumes appears in Volume I PART I FOREIGN EXCHANGE MARKET EFFICIENCY, INTEREST RATE PARITIES AND RISK PREMIA 1. Geert Bekaert and Robert J. Hodrick (1992), ‘Characterizing Predictable Components in Excess Returns on Equity and Foreign Exchange Markets’ 2. Graham Elliott and Takatoshi Ito (1999), ‘Heterogeneous Expectations and Tests of Efficiency in the Yen/Dollar Forward Exchange Rate Market’ 3. Weike Hai, Nelson C. Mark and Yangru Wu (1997), ‘Understanding Spot and Forward Exchange Rate Regressions’ 4. Nelson C. Mark and Yangru Wu (1998), ‘Rethinking Deviations from Uncovered Interest Parity: The Role of Covariance Risk and Noise’ PART II EXCHANGE RATE PREDICTABILITY 5. Francis X. Diebold and James M. Nason (1990), ‘Nonparametric Exchange Rate Prediction?’ 6. Richard M. Levich and Lee R. Thomas III (1993), ‘The Significance of Technical Trading-Rule Profits in the Foreign Exchange Market: A Bootstrap Approach’ 7. Nelson C. Mark (1995), ‘Exchange Rates and Fundamentals: Evidence on Long-Horizon Predictability’ 8. Richard H. Clarida and Mark P. Taylor (1997), ‘The Term Structure of Forward Exchange Premiums and the Forecastability of Spot Exchange Rates: Correcting the Errors’ 9. Nelson C. Mark and Doo-Yull Choi (1997), ‘Real Exchange-Rate Prediction over Long Horizons’ PART III PURCHASING POWER PARITY AND REAL EXCHANGE RATE BEHAVIOUR 10. Kenneth Rogoff (1996), ‘The Purchasing Power Parity Puzzle’ 11. Francis X. Diebold, Steven Husted and Mark Rush (1991), ‘Real Exchange Rates under the Gold Standard’ 12. Charles Engel and John H. Rogers (1996), ‘How Wide is the Border?’ 13. James R. Lothian and Mark P. Taylor (1996), ‘Real Exchange Rate Behavior: The Recent Float from the Perspective of the Past Two Centuries’ 14. Mark P. Taylor and Lucio Sarno (1998), ‘The Behavior of Real Exchange Rates during the Post-Bretton Woods Period’ 15. Matthew B. Canzoneri, Robert E. Cumby and Behzad Diba (1999), ‘Relative Labor Productivity and the Real Exchange Rate in the Long Run: Evidence for a Panel of OECD Countries’ 16. Charles Engel (1999), ‘Accounting for U.S. Real Exchange Rate Changes’ 17. Yin-Wong Cheung and Kon S. Lai (2000), ‘On Cross-Country Differences in the Persistence of Real Exchange Rates’ PART IV THE MICROSTRUCTURE OF THE FOREIGN EXCHANGE MARKET 18. Jeffrey A. Frankel and Kenneth A. Froot (1990), ‘Chartists, Fundamentalists, and Trading in the Foreign Exchange Market’ 19. Robert F. Engle, Takatoshi Ito and Wen-Ling Lin (1990), ‘Meteor Showers or Heat Waves? Heteroskedastic Intra-daily Volatility in the Foreign Exchange Market’ 20. Menzie Chinn and Jeffrey Frankel (1994), ‘Patterns in Exchange Rate Forecasts for Twenty-five Currencies’ 21. Hendrik Bessembinder (1994), ‘Bid-Ask Spreads in the Interbank Foreign Exchange Markets’ 22. Philippe Jorion (1995), ‘Predicting Volatility in the Foreign Exchange Market’ 23. Richard K. Lyons (1995), ‘Tests of Microstructural Hypotheses in the Foreign Exchange Market’ 24. Richard K. Lyons (1997), ‘A Simultaneous Trade Model of the Foreign Exchange Hot Potato’ 25. Takatoshi Ito, Richard K. Lyons and Michael T. Melvin (1998), ‘Is There Private Information in the FX Market? The Tokyo Experiment’ Name Index

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Book SynopsisThe Political Economy of Monetary Union presents an important collection of the most influential articles covering different areas in this expanding field.The volume brings together both the classical articles which have laid the foundations for the theory of optimum currency and the resulting empirical literature. Further papers focus on the issues of fiscal policy, the design and operation of the central bank in a monetary union and the problems of transition to monetary union.This authoritative volume is essential reading for all scholars, students and practitioners interested in the issues relating to economic and monetary unification.Trade Review'The selection of readings prepared by Paul De Grauwe - himself an important contributor to the theory of monetary union - is a most timely and useful tool for teachers and students.' -- Giorgio Basevi, University of Bologna, ItalyTable of ContentsContents Acknowledgements Introduction Paul De Grauwe PART I THE THEORY OF OPTIMUM CURRENCY AREAS 1. Robert A. Mundell (1961), ‘A Theory of Optimum Currency Areas’ 2. Ronald I. McKinnon (1963), ‘Optimum Currency Areas’ 3. Peter B. Kenen (1969), ‘The Theory of Optimum Currency Areas: An Eclectic View’ 4. Paul Krugman (1993), ‘Lessons of Massachusetts for EMU’ 5. George S. Tavlas (1993) ‘The "New" Theory of Optimum Currency Areas’ 6. Tamim Bayoumi (1994), ‘A Formal Model of Optimum Currency Areas’ PART II EMPIRICAL ANALYSIS OF OPTIMUM CURRENCY AREAS 7. Tamim Bayoumi and Barry Eichengreen (1993), ‘Shocking Aspects of European Monetary Integration’ 8. Tamim Bayoumi and Barry Eichengreen (1997), ‘Ever Closer to Heaven? An Optimum-Currency-Area Index for European Countries’ 9. M.J. Artis and W. Zhang (1997), ‘International Business Cycles and the ERM: Is there a European Business Cycle?’ 10. Paul De Grauwe and Wim Vanhaverbeke (1993), ‘Is Europe an Optimum Currency Area?: Evidence from Regional Data’ 11. Jörg Decressin and Antonio Fatás (1995), ‘Regional Labour Market Dynamics in Europe’ 12. Charles Engel and John H. Rogers (1996), ‘How Wide is the Border?’ 13. Jeffrey A. Frankel and Andrew K. Rose (1998), ‘The Endogeneity of the Optimum Currency Area Criteria’ PART III FISCAL POLICIES IN A MONETARY UNION 14. Xavier Sala-i-Martín and Jeffrey Sachs (1992), ‘Fiscal Federalism and Optimum Currency Areas: Evidence for Europe from the United States’ 15. Jürgen von Hagen (1992), ‘Fiscal Arrangements in a Monetary Union. Evidence from the US’ 16. Willem Buiter, Giancarlo Corsetti and Nouriel Roubini (1993), ‘Excessive Deficits: Sense and Nonsense in the Treaty of Maastricht’ 17. Charles Wyplosz (1991), ‘Monetary Union and Fiscal Policy Discipline’ 18. Pierfederico Asdrubali, Bent E. Sørensen and Oved Yosha (1996), ‘Channels of Interstate Risk Sharing: United States 1963–1990’ PART IV THE CENTRAL BANK IN A MONETARY UNION 19. Jakob de Haan (1997), ‘The European Central Bank: Independence, Accountability and Strategy: A Review’ 20. Stephen G. Cecchetti (1999), ‘Legal Structure, Financial Structure, and the Monetary Policy Transmission Mechanism’ 21. Rudi Dornbusch, Carlo Favero and Francesco Giavazzi (1998), ‘Immediate Challenges for the European Central Bank’ PART V ISSUES OF TRANSITION TO MONETARY UNION 22. David Begg, Francesco Giavazzi, Jürgen von Hagen and Charles Wyplosz (1997), EMU: Getting the End-game Right 23. Roland Vaubel (1990), ‘Currency Competition and European Monetary Integration’ 24. Friedrich A. Hayek (1984), ‘The Theory of Currency Competition. I.1 The Future Unit of Value’ Name Index

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Book SynopsisOpen-Economy Macroeconomics for Developing Countries focuses on fiscal, monetary and exchange rate issues of importance to less developed economies. The book argues that the dichotomy between the short-term macroeconomic stabilization goal and the long-term economic growth objective commonly found in developing countries' policy framework is inappropriate. The authors report empirical evidence to support the proposition that macroeconomic stability is a pre-requisite for sustained economic growth and the root of macroeconomic instability in developing countries lies in the government budget deficits. The book discusses the stabilization tools available to deal with capital flows, supply shocks and the effects of financial deregulation. It opens with a discussion of macroeconomic policy problems for open developing economies and an historical overview of the international institutions such as IMF, GATT and UNCTAD. The authors then provide a comprehensive review of macroeconomic models which are popularly used to analyse policy dilemmas related to internal and external balances of open economies.Having reviewed the institutional and theoretical framework, the authors assess the macroeconomic impact of financial deregulation, capital flows and foreign investment. They address the debt crisis, financial instability, capital flight, currency substitution and exchange rate arrangements. The authors also consider more general issues such as the political economy of macroeconomic management and the institutional framework that may enhance credibility and effectiveness of macroeconomic policy. In conclusion, they stress that the openness of an economy itself acts as a constraint on macroeconomic mismanagement and hence may enhance economic growth.This comprehensive book will be an important addition to the literature, and will be of use to advanced undergraduates and graduates of development economics, development studies and financial and monetary economics.Trade Review'The teaching of macroeconomics has had to change in recent years to take account of the ever-increasing integration of the world economy, with countries more open to foreign investment and capital flows, and vulnerable to exchange rate movements and capital flight. Hossain and Chowdhury have written an exciting new macro-text for the 21st century reflecting these issues, which will be invaluable to teachers and students world-wide.'Table of ContentsContents: Preface 1. Openness and Macroeconomic Performance 2. Open-economy Macroeconomics – Concepts, Issues and Institutions 3. Open-economy Macro Models 4. Foreign Capital and Economic Growth 5. Debt Crisis and Capital Flight 6. Budget Deficits, Inflation and Balance of Payments 7. Money Growth, Inflation and Monetary Policy 8. Exchange Rate Policy 9. The Political Economy of Macroeconomic Management: The Need for Institutional Change Bibliography Index

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