Chapter 3 covers traditional topics of monetary macroeconomics. To acquaint readers with the present methods, it starts with conversant material, such as superneutrality of money, the Tobin effect, and forced saving. A large section is devoted to interactions between monetary and fiscal policies. This passage simulates the macroeconomic consequences of sovereign insolvencies and contains a comparison of Ricardian and non-Ricardian economies, a distinction that is crucial for policy analysis. Two closing sections pertain to price and wage rigidities. They emphasize that monetary policies have real effects in the presence of nominal frictions. According to the view sponsored here, models with sticky wages and prices do not compete with flexible price settings but rather complement them in that they shift attention to the short run.
Keywords: superneutrality of money, Tobin effect, fiscal policy, sticky wages, Ricardian and non-Ricardian economies, forced saving, price and wage rigidities, nominal frictions, sovereign insolvencies
Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
If you think you should have access to this title, please contact your librarian.