CONTENTS
Preface = xi
List of Participants = xiii
Notes on the Contributors = xv
Introduction = xxii
1 Tracks towards a Common Monetary Policy in Europe / Norbert Kloten = 1
1.1 Introduction = 1
1.2 The New Committee = 2
1.3 The Main Questions = 3
1.4 The Strategy of an IMF and a European Parallel Currency = 4
1.5 A Conceptually-Based Approach = 9
1.6 The Status of Monetary Policy in the Transitional Stages = 11
1.7 A Rigid Schedule for the Integration Programme or a Tentative Approach? = 12
1.8 Conclusions = 14
Discussant / Manfred Borchert = 18
2 Monetarism, Microfoundations and the Theory of Monetary Policy / David Laidler = 21
2.1 Introduction = 21
2.2 Monetary Policy in the Economics of the Neoclassical Synthesis and Monetarism = 22
2.3 Microfoundations and the New Monetary Economics = 26
2.4 Money as a Public Good = 32
2.5 Concluding Comments = 37
3 Monetarism in a World without 'Money' / Thomas Mayer = 43
3.1 The Contributions of Monetarism = 44
3.2 Is Money Still a Useful Measure? = 44
3.3 The Behaviour of Velocity in the USA = 48
3.4 Velocity in a Sample of Countries = 50
3.5 Money Demand Functions = 55
3.6 Implications for Monetarism = 56
3.7 An Evaluation = 58
3.8 Induced Financial Evolution = 61
3.9 A Science-Fiction World = 62
3.10 An Overdraft World = 63
3.11 More Perfect Asset Markets = 65
3.12 Conclusion = 66
Discussant / Joseph Bisignano = 71
4 The Evolution of the Banking System and the Theory of Monetary Policy / Victoria Chick = 79
4.1 Introduction = 79
4.2 Stages of Banking Development = 80
4.3 Institutional Change and the Theory and Practice of Monetary Policy = 84
4.4 Conclusion = 91
Discussant / G. M. Ambrosi = 93
5 Financial Theory and Central Bank Policies / Marvin Goodfriend = 100
5.1 Introduction = 100
5.2 Interest Rate Smoothing = 101
5.3 Financial Theory and Bank Structure = 104
5.4 Emergency Credit Assistance = 108
5.5 The Lender of the Last Resort = 111
5.6 Summary = 114
Discussant / Manfred J. M. Neumann = 119
6 The Demand for Money in Japan, the United Kingdom, West Germany and the USA: An Empirical Study of the Evidence since 1973 / Herbert Buscher ; Stephen F. Frowen = 123
6.1 Introduction = 123
6.2 The Partial Adjustment Approach to the Demand for Money = 125
6.3 The Forecasting Performances of Different Money Demand Estimates = 142
6.4 Co-integration and Error-Correction Modelling = 146
6.5 Summary and Conclusions = 156
Discussant / J u ·· rgen Siebke = 165
7 Money Supply, Interest Rate and Exchange Rate Targets: Conflicting Issues in an Open Economy / R u ·· diger Pohl = 171
7.1 Introduction = 171
7.2 The Model = 172
7.3 Ineffective Endogenous Monetary Policy = 174
7.4 Endogenous Real Exchange Rate = 177
7.5 Monetary Strategies = 178
7.6 Conclusion and Outlook = 184
Discussant / M. J. Artis = 186
8 Credit as Intermediate Target of Monetary Policy? / Wolfgang Filc = 188
8.1 Issues and Questions = 188
8.2 Bank Credit as an (Additional?) Financial Target or Indicator? = 191
8.3 Some Empirical Relationships = 198
8.4 Concluding Remarks = 212
Discussant / Dietmar Kath = 217
9 Monetary Theory and Policy in a Global Context with a Large International Debt / Paul Davidson = 225
9.1 Neoclassical Monetary Theory for Closed and, Open Economies = 225
9.2 The Keynesian - Post Keynesian Alternative View = 229
9.3 Why the Preference for Export-Led Growth? = 232
9.4 What About the International Debt Crisis? = 237
9.5 The Orthodox Neoclassical Solution = 240
9.6 Are Deficit Nations Living Beyond Their Means? = 242
9.7 A Modest Proposal for Avoiding Future Debt Crises = 244
9.8 Avoiding Default of the Existing Debt = 245
9.9 Conclusion = 254
Discussant / DeAnne Julius = 259
10 Uncovered Interest Parity Condition between the United States and Europe under Different Exchange Rate Regimes / Gebhard Kirchg a ·· ssner ; J u ·· rgen Wolters = 264
10.1 Introduction = 264
10.2 Theoretical Considerations = 265
10.3 Econometric Methodology = 268
10.4 The Data = 271
10.5 Empirical Results = 274
10.6 Concluding Remarks = 290
Discussant / George Hadjimatheou = 298
11 Monetary Policy Co-ordination in an Asymmetrical World: Future Prospects for the USA and Europe / Elias Karakitsos = 303
11.1 Introduction = 303
11.2 Co-operative and Non-Co-operative Optimal Policies under Rational Expectations = 306
11.3 The Model = 310
11.4 The Framework of Co-operation and Non-Co-operation = 312
11.5 The Welfare Gains/Losses under Non-Co-operation and Co-operation = 316
11.6 Conclusion = 320
Discussant / Hans-Eckart Scharrer = 323
12 Concepts and Implications of International Monetary Co-ordination / Manfred Willms = 327
12.1 Introduction = 327
12.2 Experiences with the Floating Exchange-Rate System = 328
12.3 Proposals for International Monetary Co-ordination = 331
12.4 Evaluation of Monetary Policy Co-ordination = 337
12.5 Perspectives for the 1990s = 344
13 Address by the President of the LZB in Berlin / Dieter Hiss = 350
14 Comments on Monetary Theory and Monetary Policy: New Tracks for the 1990s / Peter Zdrahal = 352
14.1 The Globalisation of Financial Markets = 353
14.2 Turnover in Financial Markets = 353
Name Index = 357
Subject Index = 360
