New Approaches to Monetary Economics Proceedings of the Second International Symposium in Economic Theory and Econometrics

New Approaches to Monetary Economics brings together presentations of innovative research in the field of monetary economics. Much of this research develops and applies approaches to modelling financial intermediation, aggregate fluctuations, monetary aggregation and transactions-motivated monetary equilibrium. The contents of this volume comprise the proceedings of the second in a conference series entitled International Symposia in Economic Theory and Econometrics. This conference was held in 1985 at the IC2 Institute at the University of Texas at Austin. The symposia in this series are sponsored by the IC2 Institute and the RGK Foundation. New Approaches to Monetary Economics, edited by Professors William A. Barnett and Kenneth J. Singleton, consists of five parts. Part I examines transactions-motivated monetary holding in general equilibrium; Part II, financial intermediation; Part III, monetary aggregation theory, Part IV, issues in aggregate fluctuation; and Part V, theoretical issues in the foundations of monetary economics and macroeconomics.

Editors' introduction; List of contributors; Part I. Transactions motivated monetary holdings in general equilibrium; 1. Monetary dynamics with proportional transaction costs and fixed payment periods Sanford J. Grossman; 2. A multiple means-of-payment model Edward C. Prescott; 3. Credit policy and the price level in a cash-in-advance economy Michael Woodford; Part II. Financial Intermediation; 4. Preference shocks, liquidity and central bank policy Sudipto Bhattacharya and Douglas Gale; 5. Banking and macroeconomic equilibrium Ben Bernanke and Mark Gertler; Part III. Monetary aggregation theory; 6. The microeconomic theory of monetary aggregation William A. Barnett; 7. Monetary asset separability tests Apostolos Serletis; 8. Money demand in open economies: a Divisia application to the U.S. case Jaime Marquez; 9. Aggregation of monetary goods: a production model Diana Hancock; 10. Money in the utility function: an empirical implementation James M. Poterba and Julio J. Rotemberg; 11. Comment on papers in Part III William A. Barnett; Part IV: Issues on aggregate fluctuations; 12. Asset prices in a time-series model with disparately informed, competitive traders Kenneth J. Singleton; 13. Nominal surprises, real factors and propagation mechanisms Robert G. King and Charles I. Plosser; 14. A rational expectations framework for short-run policy analysis Christopher A. Sims; Part V: Theoretical issues in the foundations of monetary economics and macroeconomics; 15. Pricing and the distribution of money holdings in a search economy, II Peter Diamond and Joel Yellin; 16. The optimal inflation rate in an overlapping-generations economy with land Bennett T. McCallum; 17. Some unsolved problems for monetary theory Neil Wallace; 18. Externalities associated with nominal price and wage rigidities John B. Taylor.

New Approaches to Monetary Economics brings together presentations of innovative research in the field of monetary economics. Much of this research develops and applies approaches to modelling financial intermediation, aggregate fluctuations, monetary aggregation and transactions-motivated monetary equilibrium.