Money and Macro Policy  by Marc Jarsulic (PDF)



Money and Macro Policy by Marc Jarsulic
English | 9 Dec. 2010 | ISBN: 9048158125 | 188 Pages | PDF | 5 MB

In recent years Monetarist theory and its policy prescriptions have had significant impact on the economics profession and on economic policy. Graduate courses and undergraduate textbooks give serious attention to models which take full-employment W alrasian equilibrium as a good description of the center of gravity of market economies, then graft on an exogenous money stock to account for price inflation and business cycles. Monetary authorities in the United States and United Kingdom have adopted restrictive monetary policies, ostensibly to deal with inflation, with very large consequences for output and employment. To their credit, many economists who have an utterly orthodox attachment to W alrasian ideas do not think much of Monetarism. James Tobin, in Asset Accumulation and Economic Activity, takes current Monetarist thinking to task in many ways, but especially for assuming that markets always clear. Frank Hahn, in Money and Inflation, faults Monetarists for not integrating money into the W alrasian model before drawing conclusions about the effects of money on equilibrium. However, the critical responses of these and other eminent economists seem to make very little headway. It is likely that this failure comes in part because their theoretical perspective is so close to that of their adversaries. The disputes seem to be over how literally to take the shared paradigm of general equilibrium.

Product Details

    Series: Recent Economic Thought (Book 5)
    Paperback: 176 pages
    Publisher: Springer; Softcover reprint of the original 1st ed. 1985 edition (December 8, 2010)
    Language: English
    ISBN-10: 9048158125
    ISBN-13: 978-9048158126