Abstract
This introductory chapter presents the scope of the book and summarises its main theme, in particular the need to develop a monetary model that goes beyond the traditional theory of a barter system, or one with one-commodity used as money to proxy the ‘workings’ of a modern-day economy, with credit. The assumption of money neutrality is dropped along with treating the medium of exchange as a ‘veil’.
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References and Further Reading
Bywaters, D., & Mlodkowski, P. (2012). The Role of Transactions Cost in Economic Growth. The International Journal of Economic Policy Studies, 3(7), 54–66.
Friedman, M. (1970). The Counter-Revolution in Monetary Theory. London: The Institute of Economics Affairs.
Hahn, F. (1981). Money and Inflation. Oxford: Bail Blackwell Publisher.
Keen, S. (2011). Debunking Economics: The Naked Emperor Dethroned? London: Zed Books Ltd. Chaps. 13 & 14.
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan (Reprint, 2007).
Minsky, P. H. (2008). Stabilizing an Unstable Economy. New York: McGraw-Hill.
Roubini, N., & Mihm, S. (2010). Crisis Economics: A Crash Course in the Future of Finance. London: Penguin Books.
Schumpeter, J. A. (1934). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and Business Cycle. New Brunswick, NJ: Transaction Publishers (Reprint, 1996). Chap. III.
Schumpeter, J. A. (1943). Capitalism, Socialism and Democracy. London: Routledge (Reprint, 1992). Chap. VII.
Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. London: Penguin Classics (Reprint, 1986).
Tobin, J. (1963). Commercial Banks as Creators of ‘Money’, No. 159, Cowles Foundations Discussion Papers from Cowles Foundation for Research in Economics, Yale University in W. L. Smith, & R. L. Teign (Eds.). (1974). Readings in Money, National Income, and Stabilization Policy (3rd ed.), 224–229. Homewood, IL: Richard D. Irwin Inc.
Click on the link (http://www.bbc.co.uk/programmes/p03plzdp) to download the BBC radio programme on the ‘Economic Rebellion’, which summaries the need for this framework to be included in mainstream economics.
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Thomas, D.G. (2018). The Need for a Financial System?. In: The Creators of Inside Money. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-90257-9_1
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DOI: https://doi.org/10.1007/978-3-319-90257-9_1
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