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Monetary Economics,
2nd Edition
This successful text, now in its second edition, offers the most comprehensive overview of
monetary economics and monetary policy currently available. It covers the microeconomic,
macroeconomic and monetary policy components of the field. The author also integrates the
presentation of monetary theory with its heritage, stylized facts, empirical formulations and
econometric tests.
Major features of the new edition include:
• Stylized facts on money demand and supply, and the relationships between monetary
policy, inflation, output and unemployment in the economy.
• Theories on money demand and supply, including precautionary and buffer stock models,
and monetary aggregation.
• Cross-country comparison of central banking and monetary policy in the US, UK and
Canada, as well as consideration of the special features of developing countries.
• Competing macroeconomic models of the Classical and Keynesian paradigms, along
with a discussion of their validity and consistency with the stylized facts.
• Monetary growth theory and the distinct roles of money and financial institutions in
economic growth in promoting endogenous growth.
• Excellent pedagogical features such as introductions, key concepts, end-of-chapter
summaries, and review and discussion questions.
This book will be of interest to teachers and students of monetary economics, money and
banking, macroeconomics and monetary policy. Instructors and students will welcome the
close integration between current theories, their heritage and their empirical validity.
Jagdish Handa is Professor of Economics at McGill University in Canada and has taught
monetary economics and macroeconomics for over forty years.
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