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Controlling the Growth of Monetary Aggregates

  • Robert H. Rasche
  • James M. Johannes

Part of the Rochester Studies in Economics and Policy Issues book series (RSEP, volume 4)

Table of contents

  1. Front Matter
    Pages i-xix
  2. Robert H. Rasche, James M. Johannes
    Pages 1-13
  3. Robert H. Rasche, James M. Johannes
    Pages 15-27
  4. Robert H. Rasche, James M. Johannes
    Pages 29-50
  5. Robert H. Rasche, James M. Johannes
    Pages 71-137
  6. Robert H. Rasche, James M. Johannes
    Pages 139-169
  7. Robert H. Rasche, James M. Johannes
    Pages 171-183
  8. Robert H. Rasche, James M. Johannes
    Pages 185-188
  9. Back Matter
    Pages 189-212

About this book

Introduction

Karl Brunner Monetary affairs have preoccupied observers over the ages. In the middle of the 14th century, the chaos in the French currency system after many rounds of currency debasement attracted comments expressing helpless confusion. Goethe's Mephistopheles convinced the imperial court to inflate with paper money "for the benefit of the public" and to satisfy all the demands on the government's largesse. Our century is no exception. The massive technological improvement in creating money has contributed to hyperinflationary experiences never before recorded in history. These events occurred, however, in the political disarray following major wars. More important are the persistent pe ace time failures of our monetary institutions. A massive worldwide deflation, centered in the United States and Germany, imposed a tragic social and political fate on Western societies. Similarly, the sequence of a worldwide inflation followed by deflation observed over the past 15 years has fostered disruptive economic and political conditions. The monetary disarray experienced throughout history was crucially influenced by the prevailing monetary arrangements. These arrangements determine the level and movement of the nation's money stock over time. Under the circumstances, the political issue confronting us bears on the useful choice of monetary arrangements. This choice should involve institutions that prohibit both massive deflation and persistent inflation.

Keywords

Deflation Hyperinflation Inflation derivatives econometrics growth monetary policy rating

Authors and affiliations

  • Robert H. Rasche
    • 1
  • James M. Johannes
    • 2
  1. 1.Michigan State UniversityUSA
  2. 2.University of Wisconsin-MadisonUSA

Bibliographic information

  • DOI https://doi.org/10.1007/978-94-009-3275-3
  • Copyright Information Springer Science+Business Media B.V. 1987
  • Publisher Name Springer, Dordrecht
  • eBook Packages Springer Book Archive
  • Print ISBN 978-94-010-7970-9
  • Online ISBN 978-94-009-3275-3
  • Series Print ISSN 0924-6002
  • Buy this book on publisher's site
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Finance, Business & Banking