Monetary economics

Monetary economics is a branch of economics that provides a framework for analyzing money in its functions as a medium of exchange, store of value, and unit of account. It considers how money, for example fiat currency, can gain acceptance purely because of its convenience as a public good.^[1] It examines the effects of monetary systems, including regulation of money and associated financial institutions^[2] and international aspects.^[3]

The discipline has historically prefigured, and remains integrally linked to, macroeconomics.^[4] Modern analysis has attempted to provide microfoundations for the demand for money^[5] and to distinguish valid nominal and real monetary relationships for micro or macro uses, including their influence on the aggregate demand for output.^[6] Its methods include deriving and testing the implications of money as a substitute for other assets^[7] and as based on explicit frictions.^[8]

History[edit]

Serious interest in the concepts behind money occurred during the dramatic period of inflation in the late 15th to early 17th centuries known as the Price Revolution, during which the value of gold fell precipitously, sometimes fluctuating wildly, because of the importation of gold from the New World, primarily by Spain.

At the end of this period, the first modern texts on monetary economics were beginning to appear.

In 1705, John Law in Scotland published Money and Trade, which examined the failure of metal-based money during the previous 150 years, and proposed replacing it with a land bank system of paper money based on the value of real estate. Though he succeeded in getting this proposal implemented, he failed to take the lessons of the Spanish Price Revolution seriously enough, and his bank failed, a bubble of speculation collapsing into extreme inflation.

Then, in 1720, Isaac Gervaise wrote The System or Theory of the Trade of the World, blaming mercantilism and state-supported credit for the inflation problems of his era, doing so in a careful, scientific way that is still respected in the 21st century.

Della Moneta, was published by Ferdinando Galiani in 1751, and is arguably the first modern text on economic theory. This was 25 years before Adam Smith's more famous book, The Wealth of Nations, the latter of which touched on some of the same topics.

Della Moneta covered all major modern monetary concepts, including the value, origin, and regulation of money. Presumably because of the previous period of unreliable monetary value, he carefully examined the possible causes for money's value to fluctuate.

During this same century, the concept of bank notes became more common in Europe. David Hume referred to it as "this new invention of paper".^[9] In his own book published the year following Galiani's, Of the Balance of Trade, Hume argues that one need not worry about the import or export of goods creating a surplus or shortage of either money or goods, because an excess or shortage of money will always increase or decrease demand, until equilibrium is reached. In modern economic terms, this is as equilibration through the price-specie flow mechanism.

Research areas[edit]

Traditionally, research areas in monetary economics have included:

empirical determinants and measurement of the money supply, whether narrowly, broadly, or index-aggregated, in relation to economic activity^[10]

Empirical determinants of the demand for money.
debt-deflation and balance-sheet theories, which hypothesize that over-extension of credit associated with a subsequent asset-price fall generate business fluctuations through the wealth effect on net worth.^[11] and the relationship between the demand for output and the demand for money^[12]
monetary implications of the asset-price/macroeconomic relation^[13]
the quantity theory of money,^[14] monetarism,^[15] and the importance and stability of the relation between the money supply and interest rates, the price level, and nominal and real output of an economy.^[16]
monetary impacts on interest rates and the term structure of interest rates^[17]
lessons of monetary/financial history^[18]
transmission mechanisms of monetary policy as to the macroeconomy^[19]
the monetary/fiscal policy relationship to macroeconomic stability^[20]
neutrality of money vs. money illusion as to a change in the money supply, price level, or inflation on output^[21]
tests, testability, and implications of rational-expectations theory as to changes in output or inflation from monetary policy^[22]
monetary implications of imperfect and asymmetric information^[23] and fraudulent finance^[24]
game theory as a modeling paradigm for monetary and financial institutions^[25]
the political economy of financial regulation and monetary policy^[26]
possible advantages of following a monetary-policy rule to avoid inefficiencies of time inconsistency from discretionary policy^[27]
"anything that central bankers should be interested in."^[28]

Notes[edit]

^ • James Tobin, 1992. "money," The New Palgrave Dictionary of Finance and Money, v. 2, pp. 770-79 & in 2008, The New Palgrave Dictionary of Economics. 2nd Edition. Table of Contents and Abstract.^{[dead link]} Reprinted in Tobin, 1996, Essays in Economics, v. 4, pp. 139-63. MIT Press.
   • _____, 1961. "Money, Capital, and Other Stores of Value," American Economic Review, 51(2), pp. 26-37. Reprinted in Tobin, 1987, Essays in Economics, v. 1, pp. 217-27. MIT Press.
   • Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, 66(6), pp. 467, 481-82.
   • John Bryan, 1980. "Transaction Demand for Money and Moral Hazard," in Models of Monetary Economies, ed. J. Kareken and N.Wallace, Federal Reserve Bank of Minneapolis, pp. 233-241 Archived 2013-09-18 at the Wayback Machine. and References, pp. 305-13. Archived 2013-09-18 at the Wayback Machine.
   • Nobuhiro Kiyotaki and Randall Wright, 1989, "On Money as a Medium of Exchange," Journal of Political Economy 97(4), pp. 927-54.
   • _____, 1993. "A Search-Theoretic Approach to Monetary Economics," American Economic Review, 83(1), pp. 63-77.
^ • J.H. Boyd, 2008. "financial intermediation," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
• Sudipto Bhattacharya, Anjan V. Thakor, and Arnoud W.A. Boot, 1998. "The Economics of Bank Regulation," Journal of Money, Credit, and Banking, 30(4), pp. 745-770.
^ • Stanley W. Black, 2008. "international monetary institutions," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
   • Robert A. Mundell, 1971. Monetary Theory: Interest, Inflation and Growth in the World Economy. Goodyear. Description.
   • Bennett T. McCallum, 1996. International Monetary Economics. Oxford. Description & chapter-preview links.
   • Maurice Obstfeld and Kenneth S. Rogoff, 1996. Foundations of International Macroeconomics. MIT Press, Ch. 8-10. Archived 2007-03-21 at the Wayback Machine. Description. Archived 2010-08-09 at the Wayback Machine.
^ • Robert W. Dimand, 2008. "macroeconomics, origins and history of" (abstract) and "monetary economics, history of" (abstract), The New Palgrave Dictionary of Economics. 2nd Edition.
• Christina D. Romer and David H. Romer, 2007:2. "Monetary Economics," NBER Reporter, pp. 1-6 Abstract-links version.
• JEL classification codes#Macroeconomics and monetary economics JEL: E Subcategories.
• David Hume, 1752. "Of Money," "Of Interest," and "Of the Balance of Trade" in Essays, Moral, Political, and Literary. Reprinted in Hume, 1955, Writings on Economics, Eugene Rotwein ed., linked Table of Contents.
• Thomas Mayer, 1980. "David Hume and Monetarism," Quarterly Journal of Economics, 95(1), pp. 89-101.
• Henry Thornton, 1802. Paper Credit. Contents, pp. ix-xii, & chapter links. Introduction by Friedrich Hayek, 1938.
• W. Stanley Jevons, 1876 [1919]. Money and the Mechanism of Exchange. Chapter-preview links.
• Carl Menger, 1892. "On the Origin of Money," Economic Journal, 2(6), pp. 239–255. Archived 2009-03-19 at the Wayback Machine.
• Knut Wicksell, [1898] 1936. Interest and Prices, tr. R.F. Kahn. Macmillan, Chapter links, pp. v-vi.
• _____, [1906] 1929. Lectures on Political Economy, v. 2: Money, tr. E. Classen, 1935. Discussed in Lionel Robbins' Introduction to v. 1: General Theory, pp. xv-xviii.
• A.C. Pigou, 1917. "The Value of Money." Quarterly Journal of Economics, 32 ( 1), pp. 38-65. Reprinted in part in A.C. Pigou (1924), Essays in Applied Economics, pp. 175- 204.
• Fisher, Irving, [1911] 1922, 2nd ed.. The Purchasing Power of Money: Its Determination and Relation to Credit, Interest, and Crises
• John Maynard Keynes, 1923. A Tract on Monetary Reform. Macmillan. Reviews, 1924 & 1996 Archived 2009-10-14 at the Wayback Machine..
• _____, 1936. The General Theory of Employment, Interest and Money. Macmillan.
• Gary S. Becker and William J. Baumol, 1952. "The Classical Monetary Theory: The Outcome of the Discussion," Economica, NS 19(76), pp. 355-376.
• Paul A. Samuelson, 1968. "What Classical and Neoclassical Monetary Theory Really Was," Canadian Journal of Economics, 1(1), pp. 1-15, & Collected Scientific Papers, 1972, v. III. pp. 529-543.
• Robert Clower, 1969b. "What Traditional Monetary Theory Really Wasn't," Canadian Journal of Economics. 2(2), pp. 299-302.
• David E.W. Laidler, 1991. The Golden Age of the Quantity Theory: The Development of Neoclassical Monetary Economics, 1870-1914. Princeton UP. Description and review.^{[dead link]}
• Bennett T. McCallum, 1989. Monetary Economics: Theory and Policy. Macmillan. Preview.
^ • William J. Baumol 1952. "The Transaction Demand for Cash: An Inventory Theoretic Approach," Quarterly Journal of Economics, 66(4), pp. 545–556. Archived 2009-03-19 at the Wayback Machine.
   • James Tobin, 1956. "The Interest-Elasticity of Transactions Demand for Cash," Review of Economics and Statistics, 38(3), pp. 241-247.^{[dead link]} Reprinted in Tobin, Essays in Economics, v. 1, Macroeconomics, pp. 229- [1] 242.
   • _____, 1958. "Liquidity Preference as Behavior Towards Risk," Review of Economic Studies 25(1), pp. 65–86.
   • Milton Friedman, 1956. "The Quantity Theory of Money: A Restatement," in Studies in the Quantity Theory of Money, Chicago. Reprinted in The Optimum Quantity of Money, 2005), pp. 51-67.
^ • Robert Clower, 1967. "A Reconsideration of the Microfoundations of Monetary Theory," Western Economic Journal, 6(1), pp. 1-8.^{[permanent dead link]}
   • _____, 1987. Money and Markets. Cambridge. Description and chapter-preview.
   • David Laidler, 1988. "Taking Money Seriously," Canadian Journal of Economics, 21(4), pp. 687–713. JSTOR 135258
   • _____, 1993. The Demand for Money: Theories, Evidence, and Problems, 4th ed. Description.
   • _____, 1997. "Notes on the Microfoundations of Monetary Economics," Economic Journal, 107(443), pp. 1213–1223. JSTOR 2957862
   • Don Patinkin, 1965, 2nd ed. Money, Interest and Prices: An Integration of Monetary and Value Theory. New York: Harper and Row. Introduction to 1990 MIT edition (PDF), and 1991 evaluation by Stanley Fischer.
   • Michael Woodford, 2003. Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press. Description and Table of Contents..
^ • James Tobin, 1969. "A General Equilibrium Approach To Monetary Theory," Journal of Money, Credit and Banking, 1(1), pp. 15-29.
   • _____ with Stephen S. Golub, 1998. Money, Credit, and Capital. Irwin/McGraw-Hill. TOC.
   • Stephen M. Goldfeld and Daniel E. Sichel, 1990. "The Demand for Money," in Handbook of Monetary Economics, v. 1, pp. 299-356. Outline. Elsevier.
   • Subramanian S. Sriram, 2001. "A Survey of Recent Empirical Money Demand Studies," IMF Staff Papers, 47(3). International Monetary Fund. pp. 334-65.
^ • Robert M. Townsend, 1980. "Models of Money with Spatially Separated Agents," in John H. Kareken and Neil Wallace, ed., Models of Monetary Economies pp. 265-303. Archived 2011-07-26 at the Wayback Machine. Federal Reserve Bank of Minneapolis.
• Neil Wallace, 2001. "Whither Monetary Economics?," International Economic Review, 42(4), pp. p. 847-869.
• Ricardo Lagos and Randall Wright, 2005. "A Unified Framework for Monetary Theory and Policy Analysis," Journal of Political Economy, 113(3], pp. 463-84. Archived 2009-03-19 at the Wayback Machine.
^ History of Monetary and Credit Theory
^ • William A. Barnett, 2008. "monetary aggregation," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
   • Phillip Cagan, 1965. Determinants and Effects of Changes in the Stock of Money, 1875-1960. NBER. Foreword by Milton Friedman, pp. xiii-xxviii. Table of Contents.
   • Milton Friedman and Anna Jacobson Schwartz, 1970. "Introduction," Monetary Statistics of the United States. Princeton. pp. 89-92. Review, Allan H. Meltzer, 1971. J of Business, 44(3), pp. 335-337.
   • Paul A. Spindt, 1985. "Money Is What Money Does: Monetary Aggregation and the Equation of Exchange," Journal of Political Economy, 93(1), pp. 175-204.
   • Michael T. Belongia, 1996. "Measurement Matters: Recent Results from Monetary Economics Reexamined," Journal of Political Economy, 104(5), pp. 1065-1083.
^ • Ben S. Bernanke, 1995. "The Macroeconomics of the Great Depression: A Comparative Approach," Journal of Money, Credit and Banking, 27(1), pp. 1-28.
   • _____, 1983. "Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression," American Economic Review, 73(3), pp. 257-276. Reprinted with Bernanke, 1995 (above), in Bernanke, 2005, Essays on the Great Depression, Princeton. Description, TOC Archived 2010-01-19 at the Wayback Machine. as ch. 1-2.
   • _____ and Mark Gertler, 1989. "Agency Costs, Net Worth, and Business Fluctuations," American Economic Review, 79(1), pp. 14-31.
   • Irving Fisher, 1933. "The Debt-Deflation Theory of Great Depressions," Econometrica, 1(4), pp. 337-357.
   • P. Bridel, 2008. "credit cycle," The New Palgrave Dictionary of Economics, 2008. 2nd Edition. Abstract.
   • Mark Gertler, 1988. "Financial Structure and Aggregate Economic Activity: An Overview," Journal of Money, Credit and Banking, 20(3), pp. 559-588.
   • Steven Gjerstad and Vernon L. Smith, 2009. "From Bubble to Depression?" Wall Street Journal, April 6.
   • Hyman P. Minsky, 1957. "Monetary Systems and Accelerator Models,"American Economic Review, 47(6), pp. 860-883.
   • Steve Fazzari and Hyman Minsky, 1984. "Domestic Monetary Policy: If Not Monetarism, What?" Journal of Economic Issues, 18(1), "Economic Policy for the Eighties and Beyond," pp. 101-116. Reprinted in M. Tool, ed. , 1984, An Institutionalist Guide to Economics and Public Policy, pp. 101-116.
   • Lance Taylor and Stephen A. O'Connell, 1985. "A Minsky Crisis," Quarterly Journal of Economics, 100(3, Supplement), pp. 871-885. Archived 2012-04-25 at the Wayback Machine.
   • Mervyn King, 1994. "Debt Deflation: Theory and Evidence," European Economic Review, 38(3-4), pp. 419-445. Abstract.
   • Enrique G. Mendoza, 2006. "Lessons from the Debt-Deflation Theory of Sudden Stops," American Economic Review, 96(2), pp. 411–416. JSTOR 30034682
   • Nobuhiro Kiyotaki and John H. Moore, 1997. "Credit Cycles," Journal of Political Economy, 105(2), pp. 211–248. JSTOR 2138839
   • Guillermo A. Calvo and Enrique G. Mendoza, 2000. "Capital-Markets Crises and Economic Collapse in Emerging Markets: An Informational-Frictions Approach,' American Economic Review, 90(2), pp. 59-64.
   • Wynne Godley and Marc Lavoie, 2007. Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth. Palgrave MacMillan. Description & contents links and review Archived 2008-11-20 at the Wayback Machine..
^ • Karl Brunner and Allan H. Meltzer, 1988. "Money and Credit in the Monetary Transmission Process," American Economic Review, 78(2), pp. 446-451.
• Edward Nelson, 2002. "Direct Effects of Base money on Aggregate Demand: Theory and Evidence," Journal of Monetary Economics, 49(4), pp. 687-708. Abstract.J. M. Keynes, 1937. "The General Theory of Employment," Quarterly Journal of Economics, 51, (2), pp. 209-223 Archived 2012-01-05 at the Wayback Machine..
• Anthony M. Santomero and John J. Seater, 1981. "Partial Adjustment in the Demand for Money: Theory and Empirics," American Economic Review, 71(4), pp. 566-578.
^ • Matteo Iacoviello, 2005. "House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle," American Economic Review, 95(3), pp. 739-764. Archived 2009-03-19 at the Wayback Machine.
   • Ben Bernanke and Mark Gertler, 1999. "Monetary Policy and Asset Price Volatility," Economic Review, Federal Reserve Bank of Kansas City, (4), pp. 17-51.
   • _____, 2001. "Should Central Banks Respond to Movements in Asset Prices?" American Economic Review, 91(2), pp. 253-257.
   • Frederic S. Mishkin, 2007. "Financial Instability and Monetary Policy," Risk USA Conference.
   • Claudio E.V. Borio and William R. White, 2003. "Whither Monetary and Financial Stability? The Implications of Evolving Policy Regimes," in Monetary Policy and Uncertainty: Adapting to a Changing Economy, pp. 131-211. Federal Reserve Bank of Kansas City.
   • Otmar Issing, 2003. "Monetary and Financial Stability: Is There a Trade-off?," Monetary Stability, Financial Stability and the Business Cycle, European Central Bank Conference.
   • Charles P. Kindleberger and Robert Z. Aliber, [1978] 2009. Manias, Panics, and Crashes: A History of Financial Crises, 6th edition. Palgrave. Description & TOC.
   • 2008:4. "Kenneth Rogoff Interview," The Region, Federal Reserve Bank of Minneapolis.
   • Lawrence Summers, 2007. "Beware Moral Hazard Fundamentalists," Financial Times, September 23.
   • William Poole, 2008. "How Important Is Moral Hazard?," Panel Discussion on Balancing Financial Stability, Price Stability and Macroeconomic Stability, U.S. Monetary Policy Forum.
   • Charles W. Calomiris, 2008. "banking crises," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
   • Lawrence H. Officer, 2008. "Topical Insight: Bailouts," The New Palgrave Dictionary of Economics Online.
   • Takeo Hoshi and Anil K. Kashyap, 2010. "Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan," Journal of Financial Economics, 97(3), pp. 398-417. Abstract.
   • Robert J. Barro, 2009. "Rare Disasters, Asset Prices, and Welfare Costs," American Economic Review, 99(1), pp. 243-64 Archived 2012-03-21 at the Wayback Machine..
^ Milton Friedman, [1987] 2008. "quantity theory of money." The New Palgrave Dictionary of Economics. 2nd Edition. Abstract. Arrow-page searchable preview at John Eatwell et al., 1989, Money: The New Palgrave, pp. 1-40.
^ • Bennett T. McCallum, 2008. "Monetarism," Concise Encyclopedia of Economics, 2nd ed.
• Phillip Cagan, 1987. "monetarism," The New Palgrave: A Dictionary of Economics, v. 3, pp. 492–97. Table of Contents. Reprinted in John Eatwell et al., 1989), Money: The New Palgrave, pp. 195-205.
• Jerome L. Stein, ed., 1976. Monetarism. Elsevier.
^ • Benjamin M. Friedman, 2008. "money supply," The New Palgrave Dictionary of Economics, 2nd Edition. v. 5, pp. 745-51. Abstract.
   • Clark Warburton, 1966. Depression, Inflation, and Monetary Policy: Selected Papers, 1945-1953. Johns Hopkins Press. Evaluation in Anna J. Schwartz, Money in Historical Perspective, 1987.
   • Milton Friedman and Anna Jacobson Schwartz, 1963. A Monetary History of the United States, 1867-1960. Princeton. Page-searchable links to chapters on 1929-41 and 1948-60.
   • James Tobin, 1970. "Money and Income: Post Hoc Ergo Propter Hoc?" Quarterly Journal of Economics, 84(2), pp. 301-317.
   • Christopher A. Sims, 1972. "Money, Income, and Causality," American Economic Review, 62(4), pp. 540-552.
   • _____, 1980. "Comparison of Interwar and Postwar Business Cycles: Monetarism Reconsidered," American Economic Review, 70(2), pp. 250-257.
   • _____, 2011. "Statistical Modeling of Monetary Policy and its Effects", Nobel Prize lecture.
   • John P. Judd and John L. Scadding, 1982. "The Search for a Stable Money Demand Function: A Survey of the Post-1973 Literature," Journal of Economic Literature, 20(3), pp. 993-1023.
   • Christina D. Romer and David H. Romer, 1989. "Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz,", NBER Macroeconomics Annual 1989, 4, downloadable at ch. 3 and at Journal of Monetary Economics, 1994, 34(1), pp. 75-88. Abstract.
   • Dennis L. Hoffman, Robert H. Rasche, and Margie A. Tieslau, 1995. "The Stability of Long-run Money Demand in Five Industrial Countries," Journal of Monetary Economics, 35(2), pp. 317-339 Abstract.
   • Robert G. King and Charles I. Plosser, 1984. "Money, Credit, and Prices in a Real Business Cycle," American Economic Review, 74(3), pp. 363-380. Reprinted in Finn E. Kydland, ed., 1995. Business Cycle Theory, pp. 136-55.
   • Tack Yun, 1996. "Nominal Price Rigidity, Money Supply Endogeneity, and Business Cycles," Journal of Monetary Economics, 37{2}, pp. 345–70. Abstract.
   • Arturo Estrella and Frederic S. Mishkin, 1997. "Is There a Role for Monetary Aggregates in the Conduct of Monetary Policy?" Journal of Monetary Economics, 40(2), pp. 279-304. Abstract.
^ • Robert Mundell, 1963. "Inflation and Real Interest," Journal of Political Economy, 71(3), pp. pp. 280-283. Archived 2009-03-19 at the Wayback Machine. Briefer description.
   • Burton G. Malkiel, [1987] 2008. "term structure of interest rates," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
   • Michael W. Brandt and David A. Chapman, 2008. "affine term structure models," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
   • William Poole, 2005. "Understanding the Term Structure of Interest Rates," speech, New York, Money Marketeers, The Down Town Association.
   • Bennett T. McCallum, 2005. "Monetary Policy and the Term Structure of Interest Rates," Economic Quarterly, 91(4), pp. 1-21. Federal Reserve Bank of Richmond.
   • Kenneth N. Kuttner, 2001. "Monetary Policy Surprises and Interest Rates: Evidence from the Fed Funds Futures Market," Journal of Monetary Economics, 47(3), pp. 523-544. Abstract.
   • 2004. Interest Rates and Monetary Policy. Conference, Federal Reserve Bank of San Francisco and Stanford Institute for Economic Policy Research. Summary and session links.
^ • Michael D. Bordo, 2008. "monetary policy, history of," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract and pre-publication copy.
   • John Kenneth Galbraith, 1975. Money: Whence it Came, Where it Went, Houghton Mifflin. ISBN 0-7351-0070-5} Extracts and review extracts.[2][3]
   • Gauti B. Eggertsson, 2008. "liquidity trap," .The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
   • Athanasios Orphanides, 2004. "Monetary Policy in Deflation: The Liquidity Trap in History and Practice," North American Journal of Economics and Finance, 15(1), pp. 101-124. Abstract.
   • Ben S. Bernanke, 2000, "Japanese Monetary Policy: A Case of Self-Induced Paralysis?" ch. 7, pp. 149-66 in Japan's Financial Crisis and Its Parallels to US Experience, Adam S. Posen and Ryoichi Mikitani, ed.
   • _____, 2003. "Some Thoughts on Monetary Policy in Japan," May 31, (speech) Federal Reserve Board.
   • _____, 2005. Essays on the Great Depression, ch. 1-4. Princeton. Description, TOC Archived 2010-01-19 at the Wayback Machine., and ch. 1, " The Macroeconomics of the Great Depression," preview. Archived 2010-07-04 at the Wayback Machine.
   • Satyajit Chatterjee and P. Dean Corbae, 2008. "Great Depression, monetary and financial forces in," The New Palgrave Dictionary of Economics , 2nd Edition. Abstract.
   • G.J. Santoni, 1987. "The Great Bull Markets 1924-29 and 1982-87: Speculative Bubbles or Economic Fundamentals?" Federal Reserve Bank of St. Louis Review, November, pp. 16-30.^{[dead link]}
   • Richard C. Koo, 2008. The Holy Grail of Macro Economics: Lessons From Japan's Great Recession, Wiley. Description and Review.
   • Carmen M. Reinhart and Kenneth S. Rogoff, 2009. This Time Is Different: Eight Centuries of Financial Folly. Princeton University Press. Description, ch. 1 ("Varieties of Crises and their Dates," pp. 3-20), and chapter-preview links.
   • Kevin H. O'Rourke and Barry Eichengreen, 2009. "A Tale of Two Depressions," pp. 1-8. VoxEU.org.
   • John Quiggin, 2010. Zombie Economics: How Dead Ideas Still Walk among Us, ch. 2-3 & 5. Princeton U.P. Description, Archived 2010-06-25 at the Wayback Machine. TOC Archived 2011-04-02 at the Wayback Machine., and Introduction.
   • Christopher L. Foote and Paul S. Willen, 2011. "subprime mortgage crisis, the," The New Palgrave Dictionary of Economics, Online Edition. Abstract.
   • Thomas J. Sargent, 2011. "United States Then, Europe Now," Archived 2013-01-15 at the Wayback Machine. Nobel lecture, sect. 7, Lessons for Now.
   • Roger Lowenstein, 2012. "The Villain," (front-cover title: "The Hero"), The Atlantic, 309(2), April, pp. 48-60. [Bernanke, other economists, and politicians on U.S. monetary policy since 2006.]
^ • Karl Brunner and Allan H. Meltzer, 1988. "Money and Credit in the Monetary Transmission Process," American Economic Review, 78(2), pp. 446-451.
   • Ben S. Bernanke and Mark Gertler, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission," Journal of Economic Perspectives, 9(4),1995 pp. 27-48.
   • Frederic S. Mishkin, 1996. "The Channels of Monetary Transmission: Lessons for Monetary Policy," Banque de France Bulletin Digest, No. 27, pp. 33-44.^{[permanent dead link]}
   • Ben S. Bernanke and Vincent R. Reinhart, 2004. "Conducting Monetary Policy at Very Low Short-Term Interest Rates," American Economic Review, 94(2), pp. 85-90.
   • Peter N. Ireland, 2008. "monetary transmission mechanism," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract. Pre-publication copy.
   • Alan S. Blinder et al., 2008. "Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence," Journal of Economic Literature, 46(4), pp. 910–945 Pre-publication copy.
   • Vasco Cúrdia and Michael Woodford, 2011, "The Central-Bank Balance Sheet as an Instrument of Monetary Policy," Journal of Monetary Economics, 58(1), pp. 54-79. Abstract.
   • Xavier Freixas, 2009. "Monetary Policy in a Systemic Crisis," Oxford Review of Economic Policy, 25(4), pp. 630-53. Abstract.
^ • From The New Palgrave Dictionary of Economics, 2008. 2nd Edition:
         "monetary and fiscal policy overview" by Narayana R. Kocherlakota. Abstract.
         "fiscal and monetary policies in developing countries" by David Fielding. Abstract.
         "government budget constraint" by Eric M. Leeper and James M. Nason. Abstract.
         "currency crises" by Graciela Laura Kaminsky. Abstract.
         "currency crises models" by Craig Burnside, Martin Eichenbaum, and Sergio Rebelo. Abstract.
   • Stanley Fischer and William Easterly, 1990. "The Economics of the Government Budget Constraint," World Bank Research Observer, 5(2), pp. p. 127-142 (PDF, pp. 5-20 of 101).
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   • Thomas J. Sargent, 2011. "United States Then, Europe Now," Archived 2013-01-15 at the Wayback Machine. Nobel lecture, sect. 7, Lessons for Now.
   • Milton Friedman, 1948. "A Monetary and Fiscal Framework for Economic Stability," American Economic Review, 38(3), pp. 245-264. Archived 2011-10-07 at the Wayback Machine.
   • _____, 1959. A Program for Monetary Stability. Fordham University Press. New York. TOC chapter-preview links.
   • Michael Woodford, 2001. "Fiscal Requirements for Price Stability," Journal of Money, Credit and Banking, 33(3), pp. 669-728.
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   • Lawrence H. Summers, 2000. "International Financial Crises: Causes, Prevention, and Cures." American Economic Review,, 90(2), pp. 1-16. Reprinted in M. Chatterji and P. Gangopadhyay, ed., 2005, Economic Globalization in Asia, pp. 47-63.
   • Graciela L. Kaminsky and Carmen M. Reinhart, 1999. "The Twin Crises: The Causes of Banking and Balance-Of-Payments Problems," American Economic Review, 89(3), pp. 473-500.
   • Christopher Adam and David Vines, 2009. "Remaking Macroeconomic Policy after the Global Financial Crisis: A Balance-Sheet Approach," Oxford Review of Economic Policy, 25(4), pp. 507-552. Abstract.
^ • Don Patinkin, 1987. "neutrality of money," The New Palgrave: A Dictionary of Economics, v. 3, pp. 639–44. Reprinted in John Eatwell et al., 1989, Money: The New Palgrave, pp. 273 - 287.
   • Irving Fisher, 1928. The Money Illusion. Chapter-preview links.
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General references[edit]

Handbook of Monetary Economics, Elsevier.

Friedman, Benjamin M., and Frank H. Hahn, ed. , 1990. v. 1 links for description & contents and chapter-outline previews

_____, 1990. v. 2 links for description & contents and chapter-outline previews.

Friedman, Benjamin, and Michael Woodford, 2010. v. 3A & 3B links for description & and chapter abstract & TOC.

Boughton, James R., and Elmus R. Wicker, 1975. The Principles of Monetary Economics.
Brunner, Karl, and Allan H. Meltzer, 1993. Money and the Economy: Issues in Monetary Analysis, Cambridge. Description and chapter previews, pp. ix-x.
Clower, Robert W., ed., 1969. Monetary Theory: Selected Readings, Harmondsworth, Penguin.
Eden, Benjamin, 2005. A Course in Monetary Economics: Sequential Trade, Money, and Uncertainty. Description.
Gale, Douglas, 1982. Money: in Equilibrium, Cambridge University Press, Cambridge Economic H andbooks, 349 pp. ISBN 978-0-521-28900-9. Description and preview.
_____, 1983. Money: in Disequilibrium, Cambridge Economic Handbooks, 382 pp. ISBN 978-0-521-26917-9. Description and preview.
Goodhart, Charles, 1989. Money, Information and Uncertainty, 2nd Ed. MIT Press. Description and chapter titles.
Grandmont, Jean-Michel, 1985. Money and Value: A Reconsideration of Classical and Neoclassical Monetary Economics, Econometric Society Monographs, v. 5, Cambridge University Press. ISBN 978-0-521-31364-3. Description and preview .
Handa, Jagdish, 2007. Monetary Economics, 2nd ed. Routledge. Description and preview.
Harris, Laurence, 1981. Monetary Theory. New York: McGraw-Hill.
Hicks, John R., 1967. Critical Essays in Monetary Theory, Chapter preview links. Oxford.
The New Palgrave Dictionary of Finance and Money, 1992. 3 v. Description.
The New Palgrave Dictionary of Economics Online, 2008. Abstract links for "Monetary Economics" (alphabetical) and "monetary".
Rabin, Alan A., 2004. Monetary Theory MPG Books: London. Arrow-page-searchable chapter previews.
Starr, Ross M., ed. (1989). General equilibrium models of monetary economies: Studies in the static foundations of monetary theory. Economic theory, econometrics, and mathematical economics. Academic Press. p. 351. ISBN 978-0-12-663970-4.
Walsh, Carl E., 2003. Monetary Theory and Policy, 2nd ed., MIT Press. ISBN 0-262-23231-6. Description and chapter-preview links.
Woodford, Michael (2003). Interest and prices: Foundations of a theory of monetary policy. Princeton, New Jersey: Princeton University Press. ISBN 0-691-01049-8.