An examination of the role of money in a dynamic economy within the context of theoretical developments both within, and in opposition to, the Quantity Theory tradition. The book aims to integrate the most important contributions to understanding the money economy dealing with market competition and the impact of attempts by government to manipulate the economy towards high levels of employment and output. The author emphasizes the dangers of basing economic policy upon macroeconomic analysis and stresses the relevance of the market process within a dynamic theory. Steele also shows the relevance of Hayek's work to Keynesian/monetarist controversies and examines the impact of inflation upon economic activity, which arises from distortions caused to relative prices. He also explains the importance of the Ricardo effect to the business cycle and indicates the monetarist sentiment in Keynes' early work. The author considers that the legacy of the Keynesian era has been costly in terms of human welfare and that Keynes was wrong to deny the link between money and prices as established by the Quantity Theory of money. He also notes that while the most dubious aspects of Keynes' "General

Drawing on years of research, Gerald Steele delves into the diverse ideas of Henry Simons, a neglected economist whose work in the 1930s on monetary and financial instability is extremely relevant to today's debates about commercial bank credit, the interdependence of fiscal and monetary policy, and financial regulation. Steele describes the emergence of the first Chicago school of economics and its distinctive difference to the School subsequently associated with the Monetarism of Milton Friedman, and shows how Simons provides the basis for what is now referred to as 'the fiscal theory of the price level' and how this differs from the monetarist attempt to control prices by controlling the supply of broad money. This book will be of interest to advanced students and researchers of the history of economic thought, economic history, macroeconomics and banking and finance.

John Maynard Keynes and Friedrich Hayek had serious differences of opinion when it came to assessing the fractured inter-war world. G. R. Steele picks apart this debate and argues persuasively that Hayek's outlook will prove to be the more enduring.

Contents:
1: Introduction; 2: Vision in Economics; 3: Philosophy and Political Economy; 4: Money Issues; 5: Macrodisequilibriam; 6: Keynes and SENIE macromodels; 7: Value Theory and Monetary Theory; 8: Money, Capital and Cycles; 9: Austrians and post-Keynsians; 10: Economic Guidance

An examination of the role of money in a dynamic economy within the context of theoretical developments both within and in opposition to, the Quantity Theory tradition. Emphasis is on the dangers of basing economic policy on macroeconomic analysis.