Innovations in financial markets and in financial management,
together with dramatic innovations in the substance and technique
of monetary theory, have made it necessary to restate the theory of
money and the theory of monetary policy. In order to provide a new
monetary theory, the author treats fully the following material:
choice of currency and the theory of convertibility; interest on
money; speculation and rational expectations; implications of
electronic-transfer settlement procedures for monetary theory, as
well as other matters. The theories of Tobin are developed and
exposited in detail, as is the work of Friedman.
General
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