Modeling Monetary Economies
- Bruce Champ, Federal Reserve Bank of Cleveland
- Scott Freeman
- Joseph Haslag, University of Missouri, Columbia
This textbook is designed to be used in an advanced undergraduate course. The approach of this text is to teach monetary economics using the classical paradigm of rational agents in a market setting. Too often monetary economics has been taught as a collection of facts about existing institutions for students to memorize. By teaching from first principles instead, the authors aim to instruct students not only in the monetary policies and institutions that exist today in the United States and Canada, but also in what policies and institutions may or should exist tomorrow and elsewhere. The text builds on a simple, clear monetary model and applies this framework consistently to a wide variety of monetary questions. The authors have added in this third edition new material on money as a means of replacing imperfect social record keeping, the role of currency in banking panics and a description of the policies implemented to deal with the banking crises that began in 2007.Read more
- Unique: the first accessible book to approach monetary economics' first principles
- Systematically adds new topics by extending the basic framework one direction at a time, letting students appreciate rigor without being overwhelmed by a new set of 'rules'
- Updated: presents ideas on monetary policy pertinent to the financial crisis that began in 2007
Reviews & endorsements
'Theory that encourages careful thinking. Applications that demonstrate relevance. All delivered in an easy yet rigorous manner. An essential text for any course in money and banking.' David Andolfatto, Federal Reserve Bank of St LouisSee more reviews
'This is simply the best book on monetary theory with which I am familiar. I cannot emphasize strongly enough how this book belongs in the curriculum of advanced undergraduates. There is no acceptable alternative. Former students have told me that the best favor that they did for themselves, before going to graduate school in economics, was reading the earlier version of Champ and Freeman, cover to cover. In a better world, this would be the standard undergraduate macro text. The ideal course is based on Champ and Freeman, and on Russell W. Cooper, Coordination Games: Complementaries and Macroeconomics, Cambridge University Press, 1999. If you cannot do this for your intermediate students, do it for your advanced students.' John Bryant, Rice University and CentER, Tilburg University
'This text is ingenious in the simplicity with which it is able to explain monetary phenomena while at the same time maintaining rigor. I taught out of earlier editions several times in undergraduate and MBA classes. With the addition of new topical material, the text can only be even better.' Finn E. Kydland, Winner, 2004 Nobel Prize in Economics, and University of California, Santa Barbara
'I have taught both undergraduates and MBAs with both previous editions of this book and found them to be wonderful texts. Both my students and I appreciated the books' clear presentations. They are clear because they are rigorous and avoid the 'implicit theorizing' that can mystify undergraduates and MBAs.' Thomas Sargent, New York University
'Champ, Freeman, and Haslag's Modeling Monetary Economies is an excellent tool for teaching monetary economics to undergraduate students. The authors use a coherent and simple framework that can be addressed to a host of key issues in money, credit, and banking.' Stephen Williamson, Washington University, St Louis
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- Edition: 3rd Edition
- Date Published: May 2011
- format: Adobe eBook Reader
- isbn: 9781139065788
- contains: 78 b/w illus. 25 tables
- availability: This ISBN is for an eBook version which is distributed on our behalf by a third party.
Table of Contents
Part I. Money:
1. A simple model of money
2. Barter and commodity money
4. International monetary systems
5. Price surprises
Part II. Banking:
7. Liquidity and financial intermediation
8. Central banking and the money supply
9. Money stock fluctuations
10. Fully backed central bank money
11. The payments system
12. Bank risk
13. Liquidity risk and bank panics
Part III. Government Debt:
14. Deficits and the national debt
15. Savings and investment
16. The effect of the national debt on capital and savings
17. The temptation of inflation.
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Instructors have used or reviewed this title for the following courses
- Advanced Macroeconomics I
- Advanced Monetary Policy
- Foundations of Monetary Economics
- Monetary Economics
- Monetary Theory
- Money and Financial Markets (req), Macroeconomic Theory (rec)
- Money and banking; Topics in Monetary Theory and Policy;
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