Constructing Monetary Economy Models (Second Edition)

Author: (USA) Bruce Knechel; Scott Freeman
Publisher:
Publish Date: 2004-03-01
Features: This book teaches monetary economics using classic examples of rational people in the market, targeting upper-level undergraduate students. Monetary economics is often taught as a series of facts about the current system for students to memorize. Starting with principles, the authors' goal is not only to inform students about the current monetary policy and system in the United States but also to prepare them for possible policies and systems in the future or elsewhere. The book is built on a simple and clear monetary model and uses this unified framework to systematically analyze various monetary issues. In the second edition, the authors have added new content, such as speculative shocks to money, the social security system, currency boards, central bank policy choices, payment systems, and the Lucas model under price surges. Many discussions of topics have been expanded, data has been significantly enriched, and exercises have been added.