Description
The foundation of the discussion is a 1998 paper by Charles Goodhart using the old Chartalist approach to monetary theory to critique the new monetary system adopted by most Western European countries in January 1999. It is reprinted here to introduce eight papers by economists, a political scientist, and a historian, many of them delivered at an April 1999 gathering at the New School for Social Research. Some look at broad themes and historical trends, while other focus on relatively narrow concerns regarding the two theories. The chartalist and metallist approaches view money as creatures respectively of the state and of the market. Annotation (c) Book News, Inc., Portland, OR (booknews.com)
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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.
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