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Springer Texts in Business and Economics

Money: Theory and Practice

Authors: Cao, Jin, Illing, Gerhard

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  • Offers an accessible approach to the state-of-art New Keynesian framework for monetary policy analysis
  • Presents a highly technical framework on an intuitive level based on simple static and two-period models, while also preparing for an extension to a truly dynamic analysis
  • Includes exercises and case studies to help students understand the comprehensive field
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eBook 63,06 €
price for France (gross)
  • ISBN 978-3-030-19697-4
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 79,11 €
price for France (gross)
  • à paraître: 4 janvier 2020
  • ISBN 978-3-030-19696-7
  • Free shipping for individuals worldwide
About this Textbook

This textbook provides an introduction to modern monetary economics for advanced undergraduates, highlighting the lessons learned from the recent financial crisis. The book presents both the core New Keynesian model and recent advances, taking into account financial frictions, and discusses recent research on an intuitive level based on simple static and two-period models, but also prepares readers for an extension to a truly dynamic analysis. Further, it offers a systematic perspective on monetary policy, covering a wide range of models to help readers gain a better understanding of controversial issues. Part I examines the long-run perspective, addressing classical monetary policy issues such as determination of the price level and interaction between monetary and fiscal policy. Part II introduces the core New Keynesian model, characterizing optimal monetary policy to stabilize short-term shocks. It discusses rules vs. discretion and the challenges arising from control errors, imperfect information and robustness issues. It also analyzes optimal control in the presence of an effective lower bound. Part III focuses on modelling financial frictions. It identifies the transmission mechanisms of monetary policy via banking and introduces models with incomplete markets, principal-agent problems, maturity mismatch and leverage cycles, to show why investors’ and intermediaries’ own stakes play a key role in lending with pro-cyclical features. In addition, it presents a tractable model for handling liquidity management and demonstrates that the need to sell assets in crisis amplifies the volatility of the real economy. Lastly, the book discusses the relation between monetary policy and financial stability, addressing systemic risk and the role of macro-prudential regulation. 


About the authors

Jin Cao is a research economist in Norges Bank, the Central Bank of Norway. He holds a PhD in economics from Ludwig Maximilians University of Munich, Germany. His research focuses on banking and finance, monetary economics, economics and institutions. 


Gerhard Illing holds the chair in macroeconomics at the Ludwig Maximilian University in Munich, Germany. Previously, he was Professor at the University of Bamberg, Germany from 1993 - 1995 and at the Goethe University Frankfurt, Germany from 1995 - 2001. His research focuses on monetary theory, financial stability, systemic risk and lender of last resort policy. He has written several books on macroeconomics, monetary theory and game theory.  

Table of contents (10 chapters)

Table of contents (10 chapters)

Buy this book

eBook 63,06 €
price for France (gross)
  • ISBN 978-3-030-19697-4
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 79,11 €
price for France (gross)
  • à paraître: 4 janvier 2020
  • ISBN 978-3-030-19696-7
  • Free shipping for individuals worldwide
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Bibliographic Information

Bibliographic Information
Book Title
Money: Theory and Practice
Authors
Series Title
Springer Texts in Business and Economics
Copyright
2019
Publisher
Springer International Publishing
Copyright Holder
Springer Nature Switzerland AG
eBook ISBN
978-3-030-19697-4
DOI
10.1007/978-3-030-19697-4
Hardcover ISBN
978-3-030-19696-7
Series ISSN
2192-4333
Edition Number
1
Number of Pages
XIV, 406
Number of Illustrations
48 b/w illustrations, 85 illustrations in colour
Topics