Macroeconomics & monetary theory

Bibliographic Information

Macroeconomics & monetary theory

Harry G. Johnson

Aldine Transaction, 2006

  • : pbk

Other Title

Macroeconomics and monetary theory

Search this Book/Journal
Note

Originally published: Hawthorne, N.Y. : Aldine Pub., 1972

Includes bibliographical references (p. 198-210)

Description and Table of Contents

Description

Macroeconomics is an outgrowth from the main stream of classical monetary theory following Keynes. Keynes changed the emphasis from determination of the level of money prices to determination of the level of output and employment. He also changed the key relationship from demand and supply of money as determining the price level to the relationship between consumption expenditure and income, in conjunction with private investment expenditure, as determining the level of output and therefore employment demanded. The income multiplier replaced the velocity of circulation as the key concept of monetary theory. The tendency of the past twenty-five years has been to reintegrate Keynesian and classical monetary theory into one general system of analysis. Moreover, as inflation has succeeded mass unemployment as a major policy problem, interest in classical monetary theory has revived, while Keynesians have increasingly' emphasized the monetary aspects of Keynesian theory. The proper contemporary distinction is not between two separate branches of economic theory, but between two areas of application or contexts of the theory of rational maximizing behavior. In the one (the microeconomic) context, it is assumed either that the overall workings of the economic system can be disregarded, or that the macroeconomic relationships are in full general equilibrium. In the other (the macroeconomic) context, it is assumed that the maximizing decisions of individual economic units (firms and households) will not necessarily add up to a macroeconomic equilibrium, but will produce a disequilibrium situation that will in the course of time produce changes in the individual decisions.

Table of Contents

Part I Macroeconomics, Part II The Demand for Money, Part III Integration of Monetary and Value Theory, Part IV Empirical Work in Monetary Economics, Part V Some Major Policy Issues, Appendix

by "Nielsen BookData"

Details
  • NCID
    BA7889335X
  • ISBN
    • 0202308650
  • LCCN
    2006044626
  • Country Code
    us
  • Title Language Code
    eng
  • Text Language Code
    eng
  • Place of Publication
    New Brunswick, N.J.
  • Pages/Volumes
    213 p.
  • Size
    23 cm
  • Classification
  • Subject Headings
Page Top