Skip to main content
SpringerLink
Log in

Monetary Disequilibrium and Market Clearing

  • Reference work entry
  • First Online:
The New Palgrave Dictionary of Economics

  • 246 Accesses

Abstract

Conventional wisdom interprets the empirical relation between monetary aggregates and measures of real aggregate economic activity primarily as reflecting the effect of monetary policy on real activity. A host of historical episodes apparently accord with this interpretation. It is, for example, hard to deny that disinflationary monetary policy contributed to the 1982 recession in the United States.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 6,499.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 8,499.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Bibliography

  • Akerlof, G., and J. Yellen. 1985. A near-rational model of the business cycle with wage and price inertia. Quarterly Journal of Economics 100(402, Supplement): 823–838.

    Article  Google Scholar 

  • Azariadis, C. 1978. Escalation clauses and the allocation of cyclical risks. Journal of Economic Theory 18(1): 119–155.

    Article  Google Scholar 

  • Barro, R.J. 1976. Rational expectations and the role of monetary policy. Journal of Monetary Economics 2(1): 1–32. Reprinted as ch. 3 in R.J. Barro, Money, expectations, and business cycles. New York: Academic Press, 1981; also reprinted in Rational expectations and econometric practice, ed. R.E. Lucas Jr. and T.J. Sargent. Minneapolis: University of Minnesota Press, 1981.

    Google Scholar 

  • Barro, R.J. 1981a. The equilibrium approach to business cycles, Ch. 2. In Money, expectations, and business cycles. New York: Academic Press.

    Google Scholar 

  • Barro, R.J. 1981b. Unanticipated money growth and economic activity in the United States, Ch. 5. In Money, expectations, and business cycles. New York: Academic Press.

    Google Scholar 

  • Barro, R.J., and Z. Hercovitz. 1980. Money stock revisions and unanticipated money growth. Journal of Monetary Economics 6(2): 257–267.

    Article  Google Scholar 

  • Boschen, J., and H.I. Grossman. 1982. Tests of equilibrium macroeconomics using contemporaneous monetary data. Journal of Monetary Economics 10(3): 309–333.

    Article  Google Scholar 

  • Fischer, S. 1977. Long-term contracts, rational expectations, and the optimal money supply rule. Journal of Political Economy 85(1): 191–205. Reprinted in Rational expectations and econometric practice, ed. R.E. Lucas Jr. and T.J. Sargent. Minneapolis: University of Minnesota Press, 1981.

    Google Scholar 

  • Grossman, H.I. 1981. Incomplete information, risk shifting, and employment fluctuations. Review of Economic Studies 48(2): 189–197.

    Article  Google Scholar 

  • Grossman, H.I. 1983. The natural-rate hypothesis, the rational-expectations hypothesis, and the remarkable survival of non-market-clearing assumptions. Carnegie-Rochester Conference Series on Public Policy 19: 225–245.

    Article  Google Scholar 

  • Grossman, H.I. and Haraf, W.S. 1985. Shunto, rational expectations, and output growth in Japan. NBER Working Paper No. 1144, revised July 1985.

    Google Scholar 

  • King, R.G. 1981. Monetary information and monetary neutrality. Journal of Monetary Economics 7(2): 195–206.

    Article  Google Scholar 

  • King, R.G., and C.I. Plosser. 1984. Money, credit, and prices in a real business cycle. American Economic Review 74(3): 363–380.

    Google Scholar 

  • Lucas Jr., R.E. 1972. Expectations and the neutrality of money. Journal of Economic Theory 4(2):103–124. Reprinted in R.E. Lucas Jr., Studies in business cycle theory. Cambridge, MA: MIT Press, 1981.

    Google Scholar 

  • Lucas Jr., R.E. 1973. Some international evidence on output-inflation tradeoffs. American Economic review 63(3): 326–334. Reprinted in R.E. Lucas Jr., Studies in business-cycle theory. Cambridge, MA: MIT Press, 1981.

    Google Scholar 

  • Lucas Jr., R.E. 1985. Models of business cycles, Yrjö Jahnsson Lectures. Helsinki.

    Google Scholar 

  • McCallum, B.T. 1986. On ‘real’ and ‘sticky-price’ theories of the business cycle. Journal of Money, Credit and Banking 17.

    Google Scholar 

  • Schultze, C.L. 1985. Microeconomic efficiency and nominal wage stickiness. American Economic Review 75(1): 1–15.

    Google Scholar 

  • Yeager, L. 1986. The significance of monetary disequilibrium. Cato Journal 6.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    Herschel I. Grossman

Authors
  1. Herschel I. Grossman
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Copyright information

© 2018 Macmillan Publishers Ltd.

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Grossman, H.I. (2018). Monetary Disequilibrium and Market Clearing. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1159

Download citation

Publish with us

Policies and ethics

Search

Navigation