Finance Constraints and the Theory of Money: Selected Papers (Economic Theory, Econometrics and Mathematical Economics)

Finance Constraints and the Theory of Selected Papers gathers together the work of S. C. Tsiang, one of the most cogent critics of the Keynesian stock approach to money in all its forms and one of the foremost champions of the flow approach. Tsiang's papers focus on finance constraints and the theory of money, tackling topics such as the role of money in trade-balance stability and the monetary theoretic foundation of the modern monetary approach to the balance of payments, as well as the diffusion of reserves and the money supply multiplier. Comprised of 17 chapters, this volume begins by providing a background to the development of Tsiang's thinking on monetary theory and why he objected to the Keynesian stock equilibrium approach to money. The reader is then introduced to speculation and income stability; misconceptions in monetary theory and their influences on financial and banking practices; and liquidity preference in general equilibrium analysis. Subsequent chapters deal with the optimum supply of money; the total inadequacy of "Keynesian" balance of payments theory; and the rationale of the mean-standard deviation analysis, skewness preference, and the demand for money. This book will be a useful resource for practitioners interested in economic theory, econometrics, and mathematical economics. Content: Front Matter, Page iii Copyright, Page iv Preface, Pages vii-x Acknowledgements, Page xi CHAPTER 1 - Introduction, Pages 1-24 CHAPTER 2 - A Note on Speculation and Income Stability, Pages 27-47 CHAPTER 3 - Liquidity Preference and Loanable Funds Theories, Multiplier and Velocity Analyses: A Synthesis, Pages 49-76 CHAPTER 4 - The Role of Money in Trade-Balance Stability: Synthesis of the Elasticity and Absorption Approaches, Pages 77-106 CHAPTER 5 - Fashions and Misconceptions in Monetary Theory and Their Influences on Financial and Banking Policies, Pages 107-130 CHAPTER 6 - Walras' Law, Say's Law, and Liquidity Preference in General Equilibrium Analysis, Pages 133-151 CHAPTER 7 - The Monetary Theoretic Foundation of the Modern Monetary Approach to the Balance of Payments, Pages 153-175 CHAPTER 8 - The Total Inadequacy of “Keynesian” Balance of Payments Theory, or Rather that of “Walras' Law”?, Pages 177-189 CHAPTER 9 - The Flow Formulation of the Money Market Equilibrium for an Open Economy and the Determination of the Exchange Rate, Pages 191-217 CHAPTER 10 - The Rationale of the Mean-Standard Deviation Analysis, Skewness Preference, and the Demand for Money, Pages 221-248 CHAPTER 11 - The Diffusion of Reserves and the Money Supply Multiplier, Pages 249-269 CHAPTER 12 - Stock or Portfolio Approach to Monetary Theory and the Neo-Keynesian School of James Tobin, Pages 271-299 CHAPTER 13 - Keynes' “Finance” Demand for Liquidity, Robertson's Loanable Funds Theory, and Friedman's Monetarism, Pages 303-330 CHAPTER 14 - A Critical Note on the Optimum Supply of Money, Pages 331-348 CHAPTER 15 - LF and LP, Pages 351-358 CHAPTER 16 - The Context of S. C. Tsiang's Monetary Economics, Pages 359-375 CHAPTER 17 - The Cash-in-Advance Constraint in International Economics, Pages 377-393 Author Index, Pages 395-398 Subject Index, Pages 399-403 Economic Theory, Econometrics, and Mathematical Economics, Page ibc1 S.c. Tsiang ; Edited By Meir Kohn ; With Contributions By John Hicks, David Laidler, And Alan Stockman. Includes Indexes. Includes Bibliographical References.