The State, the Market, and the Euro: Chartalism Versus Metallism in the Theory of MoneyStephanie Kelton, Edward J. Nell Is the theory of money that underlies most modern macroeconomics well-grounded? What determines the value of a currency, and how is the state's power over its currency related to its ability to stabilize prices and employment? Charles Goodhart's classic paper 'The Two Concepts of Money: Implications for the Analysis of Optimal Currency Areas' which first raised these questions is reprinted here, and the distinguished authors expand its line of argument and comment on its central themes. The issues discussed are of fundamental importance in contemporary monetary theory and policy. The State, the Market and the Euro presents two sharply contrasting theories of money - Chartalist and Metallist - and the resulting equally sharply contrasting approaches to macroeconomic policy. Academic monetary, financial and political economists will find this book of great interest as will policymakers, financial analysts and journalists. |
Contents
Implications for the analysis | 1 |
Mr Goodhart and the EMU | 26 |
The creditarymonetarist debate in historical perspective | 39 |
Copyright | |
7 other sections not shown
Common terms and phrases
accept approach argued barter borrowing budget capital Charles Goodhart Chartalism Chartalist circulation coinage coins commodity commodity money constraint countries created debt deficit demand deposits economic economists employment ESCB euro Europe European Central Bank eurozone example exchange rates federal fiat currency fiat money fiscal policy forms of money gold standard Goodhart important industrial inflation institutions interest rates investment issue Keynes labor liabilities loans M-form theory Maastricht Treaty means of payment medium of exchange metal money Metallist minting modern monetarist monetary policy monetary system monetary union money creation money forms money supply national currencies notes Optimal Currency Area origins of money paper political precious metal price stability private sector production profit regulation reserves role Schumpeter silver single currency sovereignty spending taxes territorial currencies theorists trade transaction costs unit of account wage