Editors Durlauf and Blume have selected key articles from the original 8-volume
edition of The New Palgrave Dictionary of Economics and collected them into one handy
volume. Each article in this compendium covers the fundamental themes within the
discipline and is written by a leading practitioner in the field.
STEVEN N. DURLAUF is the Kenneth J. Arrow Professor of Economics at
the University of Wisconsin at Madison, USA. He has served as Co-Director of the Economics
Program of the Santa Fe Institute and is currently a Research Associate of the National
Bureau of Economic Research. A Fellow of the Econometric Society, Durlauf's research
covers a range of topics in macroeconomics, econometrics, and income inequality. He
received a BA in Economics from Harvard in 1980 and his PhD in Economics from Yale in
1986.
LAWRENCE E BLUME is Goldwin Smith Professor of Economics at Cornell
University, USA. He is a member of the external faculty at the Santa Fe Institute, where
he has served as Co-Director of the Economics Program and on the Institute's steering
committee. He teaches and conducts research in general equilibrium theory and game theory,
and also has research projects on natural resource management and network design. A Fellow
of the Econometric Society, he received an AB in Economics from Washington University and
a PhD in Economics from Berkeley.
Table of Contents
List of Contributors vii
General Preface ix
Introduction x
Bank of England Charles A.E. Goodhart 1
banking crises Charles W. Calomiris 14
central bank independence Carl E. Walsh 21
commodity money François R. Velde Warren E. Weber 27
euro Adam S. Posen 34
European Central Bank Michael Binder Volker Wieland 42
Federal Reserve System Donald D. Hester 51
fiat money Neil Wallace 66
financial intermediation J.H. Boyd 76
free banking era Arthur J. Rolnick Warren E. Weber 88
German hyperinflation Theo Balderston 92
gold standard Lawrence H. Officer 96
government budget constraints Eric M. Leeper James M. Nason 108
Great Depression, monetary and financial forces in Satyajit Chatterjee P.
Dean Corbae 118
hyperinflation Juan Pablo Nicolini 123
inflation targeting Lars E.O. Svensson 127
inside and outside money Ricardo Lagos 132
liquidity trap Gauti B. Eggertsson 137
monetarism Phillip Cagan 146
monetary aggregation William A. Barnett 157
monetary and fiscal policy overview Narayana R. Kocherlakota 164
monetary business cycle models (sticky prices and wages) Christopher J.
Erceg 175
monetary business cycles (imperfect information) Christian Hellwig 181
monetary economics, history of Robert W. Dimand 189
monetary policy, history of Michael D. Bordo 205
monetary transmission mechanism Peter N. Ireland 216
money James Tobin 224
money and general equilibrium Douglas Gale 242
money supply Benjamin M. Friedman 250
neutrality of money Don Patinkin 262
optimal fiscal and monetary policy (with commitment) Mikhail Golosov Aleh
Tsyvinski 277
optimal fiscal and monetary policy (without commitment) Mikhail Golosov
Aleh Tsyvinski283
optimum quantity of money Timothy S. Fuerst 287
payment systems William Roberds 291
quantity theory of money Milton Friedman 299
real bills doctrine versus the quantity theory Timothy S. Fuerst 339
search-and-matching models of monetary exchange Randall Wright 348
silver standard Lawrence H. Officer 357
Taylor rules Athanasios Orphanides 362
time consistency of monetary and fiscal policy Paul Klein 370
Index 376
380 pages, Harcover
