New Approaches to Monetary Economics: Proceedings of the Second International Symposium in Economic Theory and Econometrics (International Symposia in Economic Theory and Econometrics (No. 2))

New Approaches to Monetary Economics brings together presentations of innovative research in the field of monetary economics. Much of this research develops and applies approaches to modelling financial intermediation, aggregate fluctuations, monetary aggregation and transactions-motivated monetary equilibrium. The contents of this volume comprise the proceedings of the second in a conference series entitled International Symposia in Economic Theory and Econometrics. This conference was held in 1985 at the IC2 Institute at the University of Texas at Austin. The symposia in this series are sponsored by the IC2 Institute and the RGK Foundation. New Approaches to Monetary Economics, edited by Professors William A. Barnett and Kenneth J. Singleton, consists of five parts. Part I examines transactions-motivated monetary holding in general equilibrium; Part II, financial intermediation; Part III, monetary aggregation theory, Part IV, issues in aggregate fluctuation; and Part V, theoretical issues in the foundations of monetary economics and macroeconomics. Cover......Page 1 Frontmatter......Page 4 Contents......Page 8 Editors' introduction......Page 10 List of contributors......Page 12 Part I - Transactions motivated monetary holdings in general equilibrium......Page 14 1 - Monetary dynamics with proportional transaction costs and fixed payment periods......Page 16 2 - A multiple means-of-payment model......Page 55 3 - Credit policy and the price level in a cash-in-advance economy......Page 65 Part II - Financial intermediation......Page 80 4 - Preference shocks, liquidity, and central bank policy......Page 82 5 - Banking and macroeconomic equilibrium......Page 102 Part III - Monetary aggregation theory......Page 126 6 - The microeconomic theory of monetary aggregation......Page 128 7 - Monetary asset separability tests......Page 182 8 - Money demand in open economies: a Divisia application to the U.S. case......Page 196 9 - Aggregation of monetary goods: a production model......Page 213 10 - Money in the utility function: an empirical implementation......Page 232 11 - Comment on papers in Part III......Page 254 Part IV - Issues on aggregate fluctuations......Page 260 12 - Asset prices in a time-series model with disparately informed, competitive traders......Page 262 13 - Nominal surprises, real factors, and propagation mechanisms......Page 286 14 - A rational expectations framework for short-run policy analysis......Page 306 Part V - Theoretical issues in the foundations of monetary economics and macroeconomics......Page 322 15 - Pricing and the distribution of money holdings in a search economy, II......Page 324 16 - The optimal inflation rate in an overlapping-generations economy with land......Page 338 17 - Some unsolved problems for monetary theory......Page 353 18 - Externalities associated with nominal price and wage rigidities......Page 363 Edited By William A. Barnett And Kenneth J. Singleton. Includes Bibliographies.