Monetary Theory And Policy: Proceedings Of The Fourth International Conference On Monetary Economics And Banking Held In Aix-en-provence, France, June 1987 (studies In Contemporary Economics)

Didier LAUSSEL, William MAROIS and Antoine SOUBEYRAN The papers collected in this volume were presented at the "4th International Conference on Monetary Economics and Banking" held in Aix-en-Provence on June 1987 and organized by the C.E.F.I. (Center for International Economics and Finance of the University of Aix-Marseille II) and the GRECO "Monnaie et Financement" of the C.N.R.S. (National Center for Scientific Research). They concern two main topics: monetary theory and monetary policy. In the first one, the contributions provide new insights in some important problems like rational expectations, monetary optimizing models or portfolio choices. In the second one, almost all the texts are devoted to the game-theoretic approach of monetary policy which is a research area mainly developped since about ten years. I. MONETARY THEORY In their well known article on "Recent Developments in Monetary Theory", R. BARRO and S. FISCHER (1976) discussed seven main topics among which "the theory of money demand", "money, inflation and growth", "disequilibrium theory", "rational expectations and the Phillips Curve". Twelve years after, papers of this volume give some new results in these areas or explore new paths of research like a monetary theory of an innovative process of production or the application of the theory of contracts to financial problems. Front Matter....Pages I-XVIII Front Matter....Pages 1-1 Speculative Markets and Macroeconomic Controversy....Pages 3-37 A Neo-Structuralist Model of Inflation and Unemployment....Pages 39-53 Towards a Monetary Theory of a Process of Change....Pages 55-71 Ruling out Multiple Equilibrium Paths in Monetary Optimizing Models: Necessary and Sufficient Conditions....Pages 73-92 The Optimal Sharing Money-Bond in the Portfolio: The Random Characteristics Approach....Pages 93-102 Debt Contract under Imperfect Information: A Survey....Pages 103-115 Causal Relations among the Sources of Money Supply the Portuguese Case....Pages 117-147 Front Matter....Pages 149-149 Monetary Policy Credibility and Coordination....Pages 151-171 A Folk Theorem of Monetary Policy....Pages 173-206 On the Convergence of Beliefs and Policy to a Rational Expectations Equilibrium in a Dual Policy Problem....Pages 207-223 Public Debt, Inflation and the Coordination of Fiscal and Monetary Policies....Pages 225-267 Decentralized Monetary Rules in a Three-Country Model and Time Series Evidence of Structural Dependence....Pages 269-296 Fiscal Expectations and Current Account Surplus of the Main OECD Countries....Pages 297-327 The Political Economy of Debt Repudiation and Expropriation in LDCs....Pages 329-383 The papers collected in this volume provide new insights into some important problems of monetary theory and contribute significantly to the development of a new area based on monetary policy games. In Part I the reader will find new results on some specific topics of monetary theory, which are of growing importance in contemporary literature: the role of expectations in models, the trade-off between inflation and unemployment, credit contracts under imperfect information, and money supply. The papers in Part II are concerned with the game theoretic approach to monetary policy making: the time inconsistency problem is revisited in different frameworks using for instance repeated game theory, and coordination between fiscal and monetary policy is studied as a game between the Treasury and the Central Bank