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Theories of Money and Banking
This authoritative two-volume collection brings together the most important contributions to theories of money and banking written over the past century.
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Critical Acclaim
Contributors
Contents
More Information
This authoritative two-volume collection brings together the most important contributions to theories of money and banking written over the past century. Professor Wray covers a number of key topics including the historical debates about the nature of money, the role money and financial institutions play in the economy and monetary policy formation. A wide variety of approaches to money and banking are featured, among which are Monetarist, Keynesian, Marxian, Post-Keynesian and Institutionalist, and the New Monetary Consensus. Also included are a number of chapters presenting General Equilibrium, Chartalist or State Money, and Circuitiste views. In addition to the views of economists, this well-rounded set incorporates historical, sociological and anthropological approaches to money as well as theoretical topics such as interest rate, inflation rate, and exchange rate determination. This collection, along with an original introduction by the editor, will be of immense value to anyone with an interest in the field of money and banking.
Critical Acclaim
‘This is an edited, two-volume collection of articles with the focus on questions of the emergence of money, the role of money, monetary policy, and the importance of financial institutions. Overall, the collection provides interesting insights on ideas in various heterodox monetary research programs, particularly the ones following a post-Keynesian agenda, and I can see it as a useful reference for those who want to learn and write about these research programs.’
– Simon Bilo, Journal of the History of Economic Thought
‘Randall Wray’s two volumes provide a bright beacon in a darkening night of turmoil, confusion and ignorance. By bringing together classics from both the mainstream and heterodox approaches to monetary theory and policy, Wray provides a fundamental resource for the urgently needed rethink on how the interrelated world of monetary production economies functions or misfunctions, and also a basis for the development of a sound theory on how to erect effective policies for tackling major, potentially disastrous problems.’
– Geoffrey Harcourt, University of New South Wales, Australia
– Simon Bilo, Journal of the History of Economic Thought
‘Randall Wray’s two volumes provide a bright beacon in a darkening night of turmoil, confusion and ignorance. By bringing together classics from both the mainstream and heterodox approaches to monetary theory and policy, Wray provides a fundamental resource for the urgently needed rethink on how the interrelated world of monetary production economies functions or misfunctions, and also a basis for the development of a sound theory on how to erect effective policies for tackling major, potentially disastrous problems.’
– Geoffrey Harcourt, University of New South Wales, Australia
Contributors
65 articles, dating from 1937 to 2010
Contributors include: P. Arestis, P. Davidson, D. Foley, M. Friedman, C. Goodhart, J.M. Keynes, J.A. Kregel, A. Lerner, H.P. Minsky, M. Sawyer, J. Tobin
Contributors include: P. Arestis, P. Davidson, D. Foley, M. Friedman, C. Goodhart, J.M. Keynes, J.A. Kregel, A. Lerner, H.P. Minsky, M. Sawyer, J. Tobin
Contents
Contents:
Volume I: Development of Heterodox Approaches to Money and Banking
Acknowledgements
Introduction An Overview of Heterodox Approaches to Money and Financial Institutions
L. Randall Wray
PART I HISTORICAL DEBATES ON THEORIES OF MONEY
1. Charles A.E. Goodhart (1998), ‘The Two Concepts of Money: Implications for the Analysis of Optimal Currency Areas’
2. John Maynard Keynes (1979), ‘The Distinction Between a Co-Operative Economy and an Entrepreneur Economy’
PART II HISTORICAL, SOCIOLOGICAL AND ANTHROPOLOGICAL APPROACHES TO MONEY
3. Philip Grierson (1977), ‘The Origins of Money’
4. Geoffrey Ingham (2000), ‘“Babylonian Madness”: On the Historical and Sociological Origins of Money’
5. Mark S. Peacock (2006), ‘The Origins of Money in Ancient Greece: The Political Economy of Coinage and Exchange’
6. Viviana A. Zelizer (1989), ‘The Social Meaning of Money: “Special Monies”’
PART III KEYNESIAN AND INSTITUTIONALIST APPROACHES TO MONEY
7. John Maynard Keynes (1973), ‘A Monetary Theory of Production’
8. Dudley Dillard (1980), ‘A Monetary Theory of Production: Keynes and the Institutionalists’
9. Éric Tymoigne (2003), ‘Keynes and Commons on Money’
10. Paul Davidson (1974), ‘A Keynesian View of Friedman’s Theoretical Framework for Monetary Analysis’
11. J.A. Kregel (1988), ‘The Multiplier and Liquidity Preference: Two Sides of the Theory of Effective Demand’
PART IV ENDOGENOUS MONEY
12. Basil J. Moore (1979), ‘The Endogenous Money Stock’
13. Marc Lavoie (1985), ‘Credit and Money: The Dynamic Circuit, Overdraft Economics, and Post-Keynesian Economics’
14. L. Randall Wray (2006), ‘When are Interest Rates Exogenous?’
15. Scott T. Fullwiler (2006), ‘Setting Interest Rates in the Modern Money Era’
PART V MONEY AND THE CIRCUIT
16. Alain Parguez and Mario Seccareccia (2000), ‘The Credit Theory of Money: The Monetary Circuit Approach’
17. Giuseppe Fontana (2000), ‘Post Keynesians and Circuitists on Money and Uncertainty: An Attempt at Generality’
18. Eladio Febrero (2008), ‘The Monetization of Profits in a Monetary Circuit Framework’
19. Wynne Godley (2004), ‘Weaving Cloth from Graziani’s Thread: Endogenous Money in a Simple (but Complete) Keynesian Model’
20. Wynne Godley and Marc Lavoie (2007), ‘Fiscal Policy in a Stock-Flow Consistent (SFC) Model’
PART VI MARX’S APPROACH TO MONEY
21. David Levine (1983), ‘Two Options for the Theory of Money’
22. Duncan K. Foley (1983), ‘On Marx’s Theory of Money’
23. Riccardo Bellofiore (2004), ‘“As if its Body were by Love Possessed”. Abstract Labour and the Monetary Circuit: A Macro-Social Reading of Marx’s Labour Theory of Value’
24. L. Randall Wray (1999), ‘Theories of Value and the Monetary Theory of Production’
PART VII THE MODERN MONEY OR NEOCHARTALIST APPROACH
25. Abba P. Lerner (1947), ‘Money as a Creature of the State’
26. Stephanie Bell (2000), ‘Do Taxes and Bonds Finance Government Spending?’
27. Stephanie Bell (2001), ‘The Role of the State and the Hierarchy of Money’
28. Mathew Forstater (2006), ‘Tax-Driven Money: Additional Evidence from the History of Economic Thought, Economic History and Economic Policy’
29. Alain Parguez (2002), ‘A Monetary Theory of Public Finance’
30. Jan A. Kregel (2010), ‘Keynes’s Influence on Modern Economics: Some Overlooked Contributions of Keynes’s Theory of Finance and Economic Policy’
Volume II: Alternative Approaches to Money, Financial Institutions and Policy
Acknowledgements
Introduction An introduction to both volumes by the editor appears in Volume I
PART I MONETARIST AND “KEYNESIAN” APPROACHES TO MONEY AND BANKS
1. Milton Friedman (1948), ‘A Monetary and Fiscal Framework for Economic Stability’
2. Karl Brunner (1968), ‘The Role of Money and Monetary Policy’
3. Milton Friedman (1968), ‘The Role of Monetary Policy’
4. James Tobin (1963), ‘Commercial Banks as Creators of “Money”’
5. David Romer (2000), ‘Keynesian Macroeconomics without the LM Curve’
PART II MONEY AND GENERAL EQUILIBRIUM MODELS
6. Nobuhiro Kiyotaki and Randall Wright (1989), ‘On Money as a Medium of Exchange’
7. Joseph Aschheim and George S. Tavlas (1997), ‘Money’
8. Dror Goldberg (2009), ‘The Tax-Foundation Theory of Fiat Money’
9. Frank H. Hahn (1987), ‘The Foundations of Monetary Theory’
PART III THE NEW MONETARY CONSENSUS
10. Laurence H. Meyer (2001), ‘Does Money Matter?’
11. Ben S. Bernanke (2004), ‘Gradualism’
12. Giuseppe Fontana (2009), ‘Whither New Consensus Macroeconomics? The Role of Government and Fiscal Policy in Modern Macroeconomics’
13. Edwin le Herron and Emmanuel Carre (2006), ‘Credibility Versus Confidence in Monetary Policy’
14. Philip Arestis and Malcolm Sawyer (2006), ‘The Nature and Role of Monetary Policy when Money is Endogenous’
PART IV INTEREST RATE THEORY AND POLICY
15. John Maynard Keynes (1937), ‘The Theory of the Rate of Interest’
16. J.A. Kregel (1988), ‘Irving Fisher, Great-Grandparent of the General Theory: Money, Rate of Return Over Cost and Efficiency of Capital’
17. J. Tobin (1958), ‘Liquidity Preference as Behavior Towards Risk’
18. L. Randall Wray (1992), ‘Alternative Theories of the Rate of Interest’
19. John Smithin (2006), ‘A Real Interest Rate Rule for Monetary Policy?’
PART V MONEY, INFLATION AND EXCHANGE RATES
20. Frederic S. Mishkin (1999), ‘International Experiences with Different Monetary Policy Regimes’
21. R.E. Rowthorn (1977), ‘Conflict, Inflation and Money’
22. Paul Davidson (2006), ‘The Declining Dollar, Global Economic Growth, and Macro Stability’
23. John T. Harvey (1996), ‘Orthodox Approaches to Exchange Rate Determination: A Survey’
24. John T. Harvey (1991), ‘A Post-Keynesian View of Exchange Rate Determination’
PART VI MONEY AND FINANCE
25. Andrea Terzi (1986-87), ‘The Independence of Finance from Saving: A Flow-of-Funds Interpretation’
26. J.A. Kregel (1998), ‘Aspects of a Post Keynesian Theory of Finance’
27. J. Patrick Raines and Charles G. Leathers (1996), ‘Veblenian Stock Markets and the Efficient Markets Hypothesis’
28. Robert J. Shiller (2005), ‘Behavioral Economics and Institutional Innovation’
PART VII FINANCIAL INSTABILITY AND THE GREAT CRASH
29. Hyman P. Minsky (1994), ‘Financial Instability Hypothesis’
30. Lance Taylor and Stephen A. O’Connell (1985), ‘A Minsky Crisis’
31. Domenico Delli Gatti and Mauro Gallegati (1997), ‘At the Root of the Financial Instability Hypothesis: “Induced Investment and Business Cycles”’
32. Christopher Brown (2007), ‘Financial Engineering, Consumer Credit, and the Stability of Effective Demand’
33. Hyman P. Minsky (1993), ‘Finance and Stability: The Limits of Capitalism’
34. L. Randall Wray (2009), ‘The Rise and Fall of Money Manager Capitalism: A Minskian Approach’
35. Robert Wade (2009), ‘From Global Imbalances to Global Reorganisations’
Volume I: Development of Heterodox Approaches to Money and Banking
Acknowledgements
Introduction An Overview of Heterodox Approaches to Money and Financial Institutions
L. Randall Wray
PART I HISTORICAL DEBATES ON THEORIES OF MONEY
1. Charles A.E. Goodhart (1998), ‘The Two Concepts of Money: Implications for the Analysis of Optimal Currency Areas’
2. John Maynard Keynes (1979), ‘The Distinction Between a Co-Operative Economy and an Entrepreneur Economy’
PART II HISTORICAL, SOCIOLOGICAL AND ANTHROPOLOGICAL APPROACHES TO MONEY
3. Philip Grierson (1977), ‘The Origins of Money’
4. Geoffrey Ingham (2000), ‘“Babylonian Madness”: On the Historical and Sociological Origins of Money’
5. Mark S. Peacock (2006), ‘The Origins of Money in Ancient Greece: The Political Economy of Coinage and Exchange’
6. Viviana A. Zelizer (1989), ‘The Social Meaning of Money: “Special Monies”’
PART III KEYNESIAN AND INSTITUTIONALIST APPROACHES TO MONEY
7. John Maynard Keynes (1973), ‘A Monetary Theory of Production’
8. Dudley Dillard (1980), ‘A Monetary Theory of Production: Keynes and the Institutionalists’
9. Éric Tymoigne (2003), ‘Keynes and Commons on Money’
10. Paul Davidson (1974), ‘A Keynesian View of Friedman’s Theoretical Framework for Monetary Analysis’
11. J.A. Kregel (1988), ‘The Multiplier and Liquidity Preference: Two Sides of the Theory of Effective Demand’
PART IV ENDOGENOUS MONEY
12. Basil J. Moore (1979), ‘The Endogenous Money Stock’
13. Marc Lavoie (1985), ‘Credit and Money: The Dynamic Circuit, Overdraft Economics, and Post-Keynesian Economics’
14. L. Randall Wray (2006), ‘When are Interest Rates Exogenous?’
15. Scott T. Fullwiler (2006), ‘Setting Interest Rates in the Modern Money Era’
PART V MONEY AND THE CIRCUIT
16. Alain Parguez and Mario Seccareccia (2000), ‘The Credit Theory of Money: The Monetary Circuit Approach’
17. Giuseppe Fontana (2000), ‘Post Keynesians and Circuitists on Money and Uncertainty: An Attempt at Generality’
18. Eladio Febrero (2008), ‘The Monetization of Profits in a Monetary Circuit Framework’
19. Wynne Godley (2004), ‘Weaving Cloth from Graziani’s Thread: Endogenous Money in a Simple (but Complete) Keynesian Model’
20. Wynne Godley and Marc Lavoie (2007), ‘Fiscal Policy in a Stock-Flow Consistent (SFC) Model’
PART VI MARX’S APPROACH TO MONEY
21. David Levine (1983), ‘Two Options for the Theory of Money’
22. Duncan K. Foley (1983), ‘On Marx’s Theory of Money’
23. Riccardo Bellofiore (2004), ‘“As if its Body were by Love Possessed”. Abstract Labour and the Monetary Circuit: A Macro-Social Reading of Marx’s Labour Theory of Value’
24. L. Randall Wray (1999), ‘Theories of Value and the Monetary Theory of Production’
PART VII THE MODERN MONEY OR NEOCHARTALIST APPROACH
25. Abba P. Lerner (1947), ‘Money as a Creature of the State’
26. Stephanie Bell (2000), ‘Do Taxes and Bonds Finance Government Spending?’
27. Stephanie Bell (2001), ‘The Role of the State and the Hierarchy of Money’
28. Mathew Forstater (2006), ‘Tax-Driven Money: Additional Evidence from the History of Economic Thought, Economic History and Economic Policy’
29. Alain Parguez (2002), ‘A Monetary Theory of Public Finance’
30. Jan A. Kregel (2010), ‘Keynes’s Influence on Modern Economics: Some Overlooked Contributions of Keynes’s Theory of Finance and Economic Policy’
Volume II: Alternative Approaches to Money, Financial Institutions and Policy
Acknowledgements
Introduction An introduction to both volumes by the editor appears in Volume I
PART I MONETARIST AND “KEYNESIAN” APPROACHES TO MONEY AND BANKS
1. Milton Friedman (1948), ‘A Monetary and Fiscal Framework for Economic Stability’
2. Karl Brunner (1968), ‘The Role of Money and Monetary Policy’
3. Milton Friedman (1968), ‘The Role of Monetary Policy’
4. James Tobin (1963), ‘Commercial Banks as Creators of “Money”’
5. David Romer (2000), ‘Keynesian Macroeconomics without the LM Curve’
PART II MONEY AND GENERAL EQUILIBRIUM MODELS
6. Nobuhiro Kiyotaki and Randall Wright (1989), ‘On Money as a Medium of Exchange’
7. Joseph Aschheim and George S. Tavlas (1997), ‘Money’
8. Dror Goldberg (2009), ‘The Tax-Foundation Theory of Fiat Money’
9. Frank H. Hahn (1987), ‘The Foundations of Monetary Theory’
PART III THE NEW MONETARY CONSENSUS
10. Laurence H. Meyer (2001), ‘Does Money Matter?’
11. Ben S. Bernanke (2004), ‘Gradualism’
12. Giuseppe Fontana (2009), ‘Whither New Consensus Macroeconomics? The Role of Government and Fiscal Policy in Modern Macroeconomics’
13. Edwin le Herron and Emmanuel Carre (2006), ‘Credibility Versus Confidence in Monetary Policy’
14. Philip Arestis and Malcolm Sawyer (2006), ‘The Nature and Role of Monetary Policy when Money is Endogenous’
PART IV INTEREST RATE THEORY AND POLICY
15. John Maynard Keynes (1937), ‘The Theory of the Rate of Interest’
16. J.A. Kregel (1988), ‘Irving Fisher, Great-Grandparent of the General Theory: Money, Rate of Return Over Cost and Efficiency of Capital’
17. J. Tobin (1958), ‘Liquidity Preference as Behavior Towards Risk’
18. L. Randall Wray (1992), ‘Alternative Theories of the Rate of Interest’
19. John Smithin (2006), ‘A Real Interest Rate Rule for Monetary Policy?’
PART V MONEY, INFLATION AND EXCHANGE RATES
20. Frederic S. Mishkin (1999), ‘International Experiences with Different Monetary Policy Regimes’
21. R.E. Rowthorn (1977), ‘Conflict, Inflation and Money’
22. Paul Davidson (2006), ‘The Declining Dollar, Global Economic Growth, and Macro Stability’
23. John T. Harvey (1996), ‘Orthodox Approaches to Exchange Rate Determination: A Survey’
24. John T. Harvey (1991), ‘A Post-Keynesian View of Exchange Rate Determination’
PART VI MONEY AND FINANCE
25. Andrea Terzi (1986-87), ‘The Independence of Finance from Saving: A Flow-of-Funds Interpretation’
26. J.A. Kregel (1998), ‘Aspects of a Post Keynesian Theory of Finance’
27. J. Patrick Raines and Charles G. Leathers (1996), ‘Veblenian Stock Markets and the Efficient Markets Hypothesis’
28. Robert J. Shiller (2005), ‘Behavioral Economics and Institutional Innovation’
PART VII FINANCIAL INSTABILITY AND THE GREAT CRASH
29. Hyman P. Minsky (1994), ‘Financial Instability Hypothesis’
30. Lance Taylor and Stephen A. O’Connell (1985), ‘A Minsky Crisis’
31. Domenico Delli Gatti and Mauro Gallegati (1997), ‘At the Root of the Financial Instability Hypothesis: “Induced Investment and Business Cycles”’
32. Christopher Brown (2007), ‘Financial Engineering, Consumer Credit, and the Stability of Effective Demand’
33. Hyman P. Minsky (1993), ‘Finance and Stability: The Limits of Capitalism’
34. L. Randall Wray (2009), ‘The Rise and Fall of Money Manager Capitalism: A Minskian Approach’
35. Robert Wade (2009), ‘From Global Imbalances to Global Reorganisations’
