This is a completely revised edition of the well-known monetary textbook. The book discusses the latest analytical developments in monetary economic theory in a comprehensible and practical policy- orientated form for graduates and undergraduates specialising in monetary economics. The book provides a comprehensive survey of monetary economics, with the first nine chapters primarily concerned with micro issues, such as the role of, and demand for, money, the role and functions of banks and of the Central Bank; and the final nine chapters covering macro-economic issues, such as the transmission mechanism of monetary policy and international monetary problems.
The Nature of Markets
The Role of Money
Micro-Economics Foundations of the Demand for Money
Macro-Economic Analysis of the Demand for Money
The Principles of Intermediation
Controlling the Supply of Money: A Problem for the Authorities?
Credit Rationing
Why do we need a Central Bank?
Financial Regulation
The Determination of Interest Rates
The Term Structure of Interest Rates
The Transmission Mechanism of Monetary Policy
The Effects of Nominal Monetary Changes on Output, Employment and Inflation
Monetary Policy: Part 1
Monetary Policy: Part 2
The Regional Adjustment Process
International Monetary Relations
The Turbulent Float
Bibliography
Index