This successful text, now in its second edition, offers the most comprehensive overview of monetary economics and monetary policy currently available. It covers the microeconomic, macroeconomic and monetary policy components of the field.

Major features of the new edition include:

• Stylised facts on money demand and supply, and the relationships between monetary policy, inflation, output and unemployment in the economy.








• Theories on money demand and supply, including precautionary and buffer stock models, and monetary aggregation.








• Cross-country comparison of central banking and monetary policy in the US, UK and Canada, as well as consideration of the special features of developing countries.








• Monetary growth theory and the distinct roles of money and financial institutions in economic growth in promoting endogenous growth.

This book will be of interest to teachers and students of monetary economics, money and banking, macroeconomics and monetary policy.

• Book Cover 2
• Title 5
• Copyright 6
• Contents 9
• Preface 27
• Acknowledgments 30
• Part I: Introduction and heritage 31
  • 1 Introduction 33
  • 2 The heritage of monetary economics 64
• Part II: Money in the economy 107
  • 3 Money in the economy: General equilibrium analysis 109
• Part III: The demand for money 149
  • 4 The transactions demand for money 151
  • 5 Portfolio selection and the speculative demand for money 168
  • 6 Precautionary and buffer stock demand for money 205