MONETARY THEORY AND POLICY WALSH C. Księgarnia

Monetary Theory and Policy presents an advanced treatment of critical topics in monetary economics and the models economists use to investigate the interactions between real and monetary factors. It provides extensive coverage of general equilibrium models of money, models of the short-run real effects of monetary policy, and game-theoretic approaches to monetary policy. Among the topics covered are money-in-the-utility-function models, cash-in-advance models, money and public finance, the credit channel of money, models of time consistency, monetary policy operating procedures, and interest rates and monetary policy.

The book uses dynamic simulations to evaluate quantitatively the significance of the channels through which monetary policy and inflation affect the economy. It extensively examines modern approaches to monetary policy that stress the incentives facing central banks and the strategic interactions between central banks and the private sector. Where most treatments of monetary policy emphasize money supply control and money demand, this book focuses on the implications of interest rate control for monetary policy. The book is designed for advanced graduate students in monetary economics, economic researchers, and economists working in policy institutions and central banks.

This second edition includes new discussions of empirical evidence on the interest elasticity of money demand, the fiscal theory of the price level, the new Keynesian model, optimal policies in forward-looking models, stability and the Taylor principle, and open economy new Keynesian models. It also expands its coverage of multiple equilibria, the role of timing assumptions in cash-in-advance models, and the Ramsey approach to optimal monetary taxation. A new chapter treats policy analysis in new Keynesisan models; the discussion includes the derivation of the policy objective function, optimal commitment and discretionary outcome, targeting rules,and instrument rules.

Table of Contents

Empirical Evidence on Money, Prices, and Output

Some Basic Correlations

Estimating the Effect of Money on Output

Money-in-the-Utility Function

Introduction

The Basic MIU Model

The Welfare Cost of Inflation

Dynamics in an MIU Model

Appendix: Solving for the Dynamics in the MIU Model

Money and Transactions

Shopping Time Models

CIA Models

Other Approaches

Appendix: The CIA Approximation

Money and Public Finance

Introduction

Budget Accounting

Money and Fiscal Policy Frameworks

Optimal Taxation and Seigniorage

Nonindexed Tax Systems

Money, Output, and Inflation in the Short Run

Flexible Prices

Nominal Rigidities

A New Keynesian Model for Monetary Analysis

Sticky Wages and Prices

Money and the Open Economy

The Obstfeld-Rogoff Two-Country Model

Policy Coordination

The Small Open Economy

Open-Economy Models with Optimizing Agents and NOminal Rigidities

The Credit Channel of Monetary Policy

Imperfect Information in Credit Markets

Macroeconomic Implications

Does Credit Matter?

Discretionary Policy and Time Inconsistency

Introduction

Inflation Under Discretionary Policy

Solution to the Inflation Bias

Is the Inflation Bias Important?

Central Banking Institutions Matter?

Monetary-Policy Operating Procedures

Introduction

From Instruments to Goals

The Instrument Choice Problem

Operating Procedures and Policy Measures

Interest Rates and Monetary Policy

Introducton

Interest-Rate Rules and the Price-Level

The Term Structure of the Interest Rates

Simple Models for Policy Analysis

Policy Analysis in New Keynesian Models

The Basic New Keynesian Model

Policy Objectives

Optimal Commitment and Discretion

Extensions to the Open Economy

Targeting Regimes and Instrument Rules

Appendix

References

Name Index

Subject Index
606 pages

Po otrzymaniu zamówienia poinformujemy,
czy wybrany tytuł polskojęzyczny lub anglojęzyczny jest aktualnie na półce księgarni.