Money Theory and Policy: Second Edition

Author: Wass
Publisher:
Publish Date: 2004-11-01
Features: Professor Carl E. Wass's book "Money Theory and Policy" provides an in-depth exploration of the key design principles of monetary economics and the models economists use to examine the interplay between real and monetary factors. The book extensively discusses general equilibrium models of money, models of the short-term real effects of monetary policy, and the game-theoretic analysis of monetary policy. The topics covered include implicit money utility functions, cash reserve models, finance and public finance, the credit channel of money, forward-looking consistency models, monetary policy operating procedures, interest rates and monetary policy, and more. Since the book's publication (edition), it has been highly praised by experts and adopted as a textbook for money economics and macroeconomics at many universities in the United States and Europe.
The second edition of the book not only updates and expands the content of the previous edition but also adds discussions on cutting-edge topics in money economics, making it both a classic in the field and a reflection of its latest developments. The book combines rigorous theoretical analysis with rich empirical evidence, formal model derivations with lively policy discussions, truly earning its reputation as a monumental work in the field of money economics!
The new content added in the second edition includes empirical evidence on the interest rate elasticity of money demand, the fiscal theory of the price level, new Keynesianism and its policy analysis, forward-looking models and optimal policy, stability and the Taylor principle, and new Keynesian models in open economies. The second edition also expands its discussion on the role of multiple equilibria over time in cash reserve models and provides a more detailed analysis of the Ramsey method for optimal monetary taxation.