Monetary Theory


Alan A. Rabin, Professor of Economics, University of Tennessee, Chattanooga, US 
2004         328 pp        Hardback        978 1 84064 744 0        £80.00  

Review

‘This is a valuable and scholarly contribution to modern monetary theory. It keeps alive the ideas of monetary disequilibrium proposed by such writers as Clower, Leijonhufvud, Yeager and Laidler. While so much of monetary theory has focused on aggregate issues of how national income and the rate of inflation are determined, making use of large scale general equilibrium models, this work aims at the more fundamental question of how monetary factors facilitate the realization of gains from trade at the micro level, how they affect adjustment processes that work in individual markets, and how the interaction between these individual adjustment processes determines the performance of the overall economic system. The book is definitely worth the attention of any serious student of money.’
– Peter Howitt, Brown University, US

Description

Alan Rabin argues that new Keynesian and new classical macroeconomics, which have dominated the literature and textbooks, have crowded the monetary-disequilibrium hypothesis, or orthodox monetarism, off the intellectual stage. Trying to remedy this imbalance, the author concentrates on what he judges to be the essentials of monetary theory.
Emphasizing money’s fundamental role in lubricating exchanges and promoting economic coordination, Alan Rabin argues that when the lubricant goes awry, so do the processes being lubricated. Monetary disequilibrium can have repercussions that last months and even years. 

Contents:
Preface 1. Money in Macroeconomics: Frameworks of Analysis 2. The Services of Money 3. Money’s Demand and Supply: Equilibrium and Disequilibrium (1) 4. Money’s Demand and Supply: Equilibrium and Disequilibrium (2) 5. Patinkin’s Monetary Theory and Extensions 6. Disequilibrium Economics (1) 7. Disequilibrium Economics (2) 8. Inflation 9. Money in an Open Economy 10. Interest Rate Theory Bibliography Index