Collected Papers on Monetary TheoryeBook - 2013
One of the outstanding monetary theorists of the past 100 years, Lucas revolutionized our understanding of how money interacts with the real economy of production, consumption, and exchange. These 21 papers, published 1972–2007, cover core monetary theory and public finance, asset pricing, and the real effects of monetary instability.
Robert Lucas is one of the outstanding monetary theorists of the past hundred years. Along with Knut Wicksell, Irving Fisher, John Maynard Keynes, James Tobin, and Milton Friedman (his teacher), Lucas revolutionized our understanding of how money interacts with the real economy of production, consumption, and exchange.
Lucas’s contributions are both methodological and substantive. Methodologically, he developed dynamic, stochastic, general equilibrium models to analyze economic decision-makers operating through time in a complex, probabilistic environment. Substantively, he incorporated the quantity theory of money into these models and derived its implications for money growth, inflation, and interest rates in the long run. He also showed the different effects of anticipated and unanticipated changes in the stock of money on economic fluctuations, and helped to demonstrate that there was not a long-run trade-off between unemployment and inflation (the Phillips curve) that policy-makers could exploit.
The twenty-one papers collected in this volume fall primarily into three categories: core monetary theory and public finance, asset pricing, and the real effects of monetary instability. Published between 1972 and 2007, they will inspire students and researchers who want to study the work of a master of economic modeling and to advance economics as a pure and applied science.
This volume collects 21 papers on monetary theory by the influential Nobel-winning economist Robert E. Lucas (a student of Milton Friedman based at the U. of Chicago). Published between 1972 and 2007, the papers address three broad topics of Lucas's monetary theory: core monetary theory and public finance, asset pricing, and the real effects of monetary instability. "Insofar as they can be said to have a common theme," editor Gillman (economics, Cardiff Business School Wales) writes, "it would be the application of the theory of general equilibrium dynamics to a set of problems that had previously been studied using other, less powerful methods." Annotation ©2013 Book News, Inc., Portland, OR (booknews.com)