Monetary theory as a basis for monetary policy : papers of the IEA conference held in Trento, Italy

Since the inflationary 1970s, theoretical work on monetary policy has concentrated almost exclusively on price-level stabilization and the avoidance of nominal shocks. In the aftermath of the collapse of financial bubbles in various parts of the world, the accomplishments and limitations of this dominant approach are debated in this volume edited by Axel Leijonhufvud, with contributions by a number of noted monetary economists, including Nobel Laureate Robert Lucas. Front Matter....Pages i-xvi Monetary Theory and Central Banking....Pages 1-30 Front Matter....Pages 31-31 Intertemporal General Equilibrium and Monetary Theory....Pages 33-71 The Fiscal Theory of Money as an Unorthodox Financial Theory of the Firm....Pages 72-95 Inflation and Welfare....Pages 96-142 Front Matter....Pages 143-143 Business Cycles in a Financially Deregulated America....Pages 145-172 Learning about Trends: Spending and Credit Fluctuations in Open Economies....Pages 173-214 Monetary Policy and the Macroeconomics of ‘Soft’ Growth....Pages 215-254 Back Matter....Pages 255-271