Monetary Theory and Policy, 4e

by Walsh

| ISBN: 9780262338493 | Copyright 2017

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Contents (pg. v)
Preface (pg. xiii)
Introduction (pg. xvii)
1 Evidence on Money, Prices, and Output (pg. 1)
1.1 Introduction (pg. 1)
1.2 Some Basic Correlations (pg. 1)
1.3 Estimating the Effect of Monetary Policy on Output and Inflation (pg. 8)
1.4 Monetary Policy at Very Low Interest Rates (pg. 31)
1.5 Summary (pg. 40)
2 Money-in-the-Utility Function (pg. 41)
2.1 Introduction (pg. 41)
2.2 The Basic MIU Model (pg. 43)
2.3 The Welfare Cost of Inflation (pg. 61)
2.4 Extensions (pg. 66)
2.5 Dynamics in an MIU Model (pg. 69)
2.6 Summary (pg. 83)
2.7 Appendix: Solving the MIU Model (pg. 83)
2.8 Problems (pg. 94)
3 Money and Transactions (pg. 97)
3.1 Introduction (pg. 97)
3.2 Resource Costs of Transacting (pg. 98)
3.3 Cash-in-Advance (CIA) Models (pg. 103)
3.4 Search (pg. 120)
3.5 Summary (pg. 129)
3.6 Appendix: The CIA Approximation (pg. 130)
3.7 Problems (pg. 132)
4 Money and Public Finance (pg. 137)
4.1 Introduction (pg. 137)
4.2 Budget Accounting (pg. 138)
4.3 Money and Fiscal Policy Frameworks (pg. 144)
4.4 Deficits and Inflation (pg. 145)
4.5 The Fiscal Theory of the Price Level (pg. 162)
4.6 Optimal Taxation and Seigniorage (pg. 169)
4.7 Summary (pg. 188)
4.8 Problems (pg. 189)
5 Informational and Portfolio Rigidities (pg. 193)
5.1 Introduction (pg. 193)
5.2 Informational Frictions (pg. 194)
5.3 Limited Participation and Liquidity Effects (pg. 206)
5.4 Summary (pg. 215)
5.5 Appendix: An Imperfect-Information Model (pg. 215)
5.6 Problems (pg. 219)
6 Discretionary Policy and Time Inconsistency (pg. 221)
6.1 Introduction (pg. 221)
6.2 Inflation under Discretionary Policy (pg. 223)
6.3 Solutions to the Inflation Bias (pg. 234)
6.4 Is the Inflation Bias Important? (pg. 264)
6.5 Summary (pg. 271)
6.6 Problems (pg. 271)
7 Nominal Price and Wage Rigidities (pg. 277)
7.1 Introduction (pg. 277)
7.2 Sticky Prices and Wages (pg. 277)
7.3 Assessing Alternatives (pg. 301)
7.4 Summary (pg. 313)
7.5 Appendix: A Sticky-Wage MIU Model (pg. 314)
7.6 Problems (pg. 316)
8 New Keynesian Monetary Economics (pg. 319)
8.1 Introduction (pg. 319)
8.2 The Basic Model (pg. 320)
8.3 A Linearized New Keynesian Model (pg. 327)
8.4 Monetary Policy Analysis in New Keynesian Models (pg. 341)
8.5 Labor Market Frictions and Unemployment (pg. 365)
8.6 Summary (pg. 377)
8.7 Appendix (pg. 378)
8.8 Problems (pg. 388)
9 Monetary Policy in the Open Economy (pg. 397)
9.1 Introduction (pg. 397)
9.2 A Two-Country Open-Economy Model (pg. 398)
9.3 A Model of the Small Open Economy (pg. 424)
9.4 Additional Sources of Nominal Distortions (pg. 437)
9.5 Currency Unions (pg. 442)
9.6 Summary (pg. 447)
9.7 Appendix (pg. 448)
9.8 Problems (pg. 449)
10 Financial Markets and Monetary Policy (pg. 455)
10.1 Introduction (pg. 455)
10.2 Interest Rates and Monetary Policy (pg. 456)
10.3 The Term Structure of Interest Rates (pg. 462)
10.4 Macrofinance (pg. 467)
10.5 Policy and the Term Structure (pg. 473)
10.6 Financial Frictions in Credit Markets (pg. 478)
10.7 Macroeconomic Implications (pg. 495)
10.8 Summary (pg. 505)
10.9 Problems (pg. 505)
11 The Effective Lower Bound and Balance Sheet Policies (pg. 509)
11.1 Introduction (pg. 509)
11.2 The Effective Lower Bound (pg. 510)
11.3 Liquidity Traps (pg. 512)
11.4 Conventional Policies at the ELB (pg. 515)
11.5 Balance Sheet Policies (pg. 532)
11.6 Appendix: Derivation of the Asset Pricing Wedges (pg. 556)
11.7 Problems (pg. 557)
12 Monetary Policy Operating Procedures (pg. 561)
12.1 Introduction (pg. 561)
12.2 From Instruments to Goals (pg. 562)
12.3 The Instrument Choice Problem (pg. 563)
12.4 Operating Procedures and Policy Measures (pg. 579)
12.5 Interest on Reserves in a Channel System (pg. 590)
12.6 A Brief History of Fed Operating Procedures (pg. 595)
12.7 Other Countries (pg. 603)
12.8 Summary (pg. 605)
12.9 Problems (pg. 605)
References (pg. 609)
Name Index (pg. 645)
Subject Index (pg. 651)

Carl E. Walsh

Carl E. Walsh is Professor of Economics at the University of California, Santa Cruz. He is a Visiting Scholar at the Federal Reserve Bank of San Francisco.


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