Towards a New Paradigm in Monetary Economics
Cambridge University Press, Sep 4, 2003 - Business & Economics - 327 pages
Towards a New Paradigm for Monetary Economics presents a pioneer treatment of critical topics in monetary economics. Unlike the prevailing monetary theory, this book focuses not on the role of money in facilitating transactions, but on the role of credit in facilitating economic activities more broadly. The 'new paradigm' emphasizes the demand and supply of loanable funds, which in turn requires the understanding of the imperfections of information and the role of banks. One enlightening view is that credit is quite different from other commodities in the sense that the former is based on information and default risk. The book consists of two parts. The first part develops a basic model of credit based on banks' portfolio choices. The second part is dedicated to the policy implications, among which are the liberalization of financial markets, the East Asian Crisis, the 1991 US recession and the subsequent recovery.
What people are saying - Write a review
We haven't found any reviews in the usual places.
The principles of the new paradigm
Reflections on the current state of monetary economics
How finance differs
The ideal banking system
Restricted banking or the banking system of today
From the corn economy to the monetary economy
Towards a general equilibrium theory of credit
Financial market liberalization
Restructuring the banking sector
Regional downturns and development and monetary policy
The East Asia crisis
The 1991 US recession and the recovery
The new paradigm and the new economy
Other editions - View all
activity adverse aggregate amount analysis argued assets associated assume bank bank's banking system bankruptcy behavior bonds borrowers capital capital adequacy central changes chapter competition concerning constraints costs countries credit rationing crisis curve decrease default demand depend deposits developing discussion economy effects equilibrium equity especially excess exchange expected face fact Figure firms funds given greater hence higher interest rates hold impact imperfect important incentives increase individuals inflation instance institutions interest rate charged investment lead lenders lending less limited loans locus long-term lower marginal matters mean monetary policy noted obtain opportunity particular portfolio positive probability problems reason recession reduced regulation regulatory relatively requirements reserve requirements restrictions result risk risk averse risky role shift simply standard Stiglitz supply T-bill rate T-bills taking theory tion variable wealth worth
Page 303 - The impact of initiating dividend payments on shareholders' wealth, Journal of Business 56, 77-95.
Page 309 - The Twin Crises: The Causes of Banking and Balanceof-Payments Problems', Working Paper No. 17, Center for International Economics, University of Maryland at College Park. Krugman, P. (1993), 'International Finance and Economic Development', in A.
Page 311 - Operation Twist' and the Movement of Interest Rates and Related Economic Time Series," International Economic Review 10, 3, pp.
Page 306 - Caprio, G., I. Atiyas and JA Hanson, eds., 1994. Financial Reform: Theory and Experience. Cambridge: Cambridge University Press Caprio, G. and P. Honohan, 1999. "Restoring Banking Stability: Beyond Supervised Capital Requirements," Journal of Economic Perspectives, 13, 4, pp. 43-64 2000. "Reducing the Cost of Bank Crises: Is Basel Enough?" In David Dickinson, ed., Managing Money in the Economy. London: Routledge Caprio, G., P. Honohan, and JE Stiglitz, eds., 2001. Financial Liberalization: How Far,...