Money and Value
A Reconsideration of Classical and Neoclassical Monetary Economics

This book addresses the controversial issue of whether a competitive monetary economy has built-in price adjustment mechanisms strong enough to remove excess demands and supplies on all markets.

Jean-Michel Grandmont (Author)

9780521313643, Cambridge University Press

Paperback, published 13 September 1985

212 pages
22.9 x 15.2 x 1.2 cm, 0.32 kg

'… this book is a very worthy venture, strongly recommended to monetary theorists of all persuasions. Moreover, the accessibility of exposition should make some of its important ideas available with benefit to undergraduate students in monetary economics.' The Economic Journal

This book addresses one of the major theoretical issues that underlies, implicitly or explicitly, some recurrent controversies in macroeconomics - namely, whether a competitive monetary economy has built-in mechanisms that are strong enough to remove excess demands and supplies on all markets, through an automatic adjustment of the price system. Jean-Michel Grandmont sheds light on this complex subject by using the analytical techniques of general equilibrium theory alongside the methods of monetary analysis. The book warns against the indiscriminate use of the rational expectations hypothesis when approaching this topic, and conversely stresses the common-sense observation that short-run learning processes are among the most important characteristics of economic agents. Grandmont argues that such processes are deserving of careful theoretical study, and the result is a clear and rigorous analysis of all the issues involved.

Preface
Introduction
1. Expectations and the real balance effect
2. Money and credit in the short run
3. Classical stationary states with money and credit
4. Open-market policies and liquidity
Conclusion
Appendices
References
Index.

Subject Areas: Econometrics [KCH]