Index 305

Gertler, M. 130, 282 Gurley, J.G. 131, 132, 139, 287

Gibson paradox 74
Glazier, E.M. 192, 286 Haberler, G. 126, 216, 287
gold 29, 30, 31, 33, 34, 75, 243 Hall, R. E. 31, 194, 287
arbitrage 243 Harrison, G.W. 84, 287
as barter 25 Harsanyi, J.C. 82, 287
discoveries 222 Hart, A.G. 287
exchange standard 243 Havenstein, Rudolf 223
foreign exchange 224 Havrilesky, T.M. 133, 139, 288
mining 30 Hayek, F.A. 20, 23, 24, 202, 271, 280,
redemption restraint 223 288
reserves 74, 75 Hicks, J.R. 14, 21, 567, 65, 101, 212,
standard 4, 29, 205, 222 24041, 288
classical 68 Hirshleifer, J. 267, 280, 288
example 246 home currency 81, 121, 245, 257
international 2424, 256 homogeneity postulate 159
value 52, 223 Hong Kong, monetary regime 65
Goldfeld, S.M. 63, 64, 287 Hoover, K.D. 216, 288
Goodfriend, M. 65, 293 household spending 13
goods 12, 25, 76, 82 houses 76, 84
against-goods approach 1620 housing services 276
durable 5, 37 Howitt, P. 194, 216, 288
importable and exportable 249 Hubbard, R.G. 130, 288
production 110 Hume, D. 170, 202, 210, 247, 248, 252,
and services 6, 13, 16, 45, 46, 78, 217 288
demands 167 Humphrey, T.M. 74, 11820, 216, 240,
flow 27 241, 2889
payment for 9 Hutt, W.H. 37, 49, 192, 289
purchase of 81 hyperinflation 51, 125, 219, 232
Gordon, R.J. 67, 170, 177, 1978, 216,
287 imbalance see disequilibrium 69
government import goods 6, 248
bonds 132 incentives 195
budget deficits 121 income
securities 129 cutbacks 108
spending 5, 6 and employment 178
Graham B. 31, 287 and expenditure 13, 92, 103, 127, 131
Graham, F. D. 287 flow 94, 104
Great Britain 223 level depressed 112
Great Depression 128 mechanism 250
Greenfield, R.L. 33, 34, 81, 119, 120, nominal 11, 13, 79, 190
136, 266, 287 and prices 77
Greenwald, B. 216, 287 real 111, 112
Greidanus, T. 37, 38, 467, 49, 53, 66, shares 226
287 tax brackets 146
Greshams Law 26 total 6
Gross Domestic Product (GDP) 10, 13, industrial transactions 239
205 inflation 23, 29, 42, 51, 64, 108109,
Grossman, Herschel 67, 96, 101, 106, 111, 138, 181, 203, 21741
170, 17783, 216, 287 adjustment 118
306 Index

imported 2524 John, A. 170, 284

and unemployment 20912 Johnson, Harry G. 2645, 289
hedge 219, 233, 236 Jones, R.A. 26, 289
price 50 Jonung, L. 63, 283
side effects 22931 Judd, J.P. 63, 119, 289
suppressed 96, 108
Ingram, J.C. 259, 289 Kaldor, N. 289
inpayment or outpayment 70 Keller, R.R. 235, 289
insulation of house, yield 40, 41 Kenen, P.B. 265, 289
interbank clearing 31 Kessel, R.A.38, 289
interdependence among markets 165 Keynes, J. M. 73, 93, 102103, 107, 181,
interest 202, 28990,
as a factor price 2679 General Theory 18, 19
payments 42 Keynesian
rates 10, 12, 44, 74, 104, 132, 144, analyses 16, 71
146, 161, 162, 200, 233, 240 approaches to spending 58
declining 107 case 156
depression of 148 demand for money 20, 139
function of 275 economics 67, 137, 16970, 204
high 52, 130 liquidity 49, 144
low 222 Phillips curve 231
moneys influence 11718 subapproach 6, 7
negative 2724 theory 121
pegging 119 Kilian, L. 237, 282
policy 116 Kim, C.J. 20, 290
relations 12021 King, R. G. 208, 290
targeting 11820 Kiyotaki, N. 26, 198, 216, 282, 290
theory 1656, 26780 Kocherlakota, N.R. 65, 290
internal rate of discount (IRD) 437, 66, Koppl, R. 262, 290
127, 272, 280 Krugman, P.R. 66, 290
international Kuenne, R.E. 21, 26, 290
monetary standard 68 Kuttner, K.N. 290
trade 249, 272 Kydland, F. 208, 234, 290
International Monetary Fund 258
inventories 367, 182, 195 labor 2, 81, 83, 90, 95, 989, 111, 228
investing and disinvesting 40, 41 supply 87, 88, 99, 112, 183, 187
investment 5, 46, 97 lags, long and variable 130
demand intensification of 157 Laidler, D. 46, 61, 64, 70, 74, 121, 139,
and deposits 124 20917, 220, 29091
goods 165, 226 land 84, 103, 220, 222
private 6 rents 200, 203, 249
prospects 4, 47 Lange, O. 82, 158, 291
real 51, 80, 107 Latin America 222, 240
inward and outward flow of payments 17 Laudan, L. 100, 291
IRD see internal rate of discount League of Nations 240, 291
Leeper, E.M. 137, 291
Japan 66, 235 Leibenstein, Harvey 7, 291
stagnation in 38 Leijonhufvud, A. 28, 67, 89, 177, 182,
jewelry 31, 103, 240 199, 219, 291
job search 187 leisure 186, 187, 188, 189
 Index 307

Lerner, A.P. 108, 235, 280, 291 Marty, A.L. 220, 293
Lindbeck, A. 196, 2912 Masera, R.S.79, 293
Lipsey, R.G. 166, 281 materials 42, 200
liquidity preference theory 11617 McCallum, B. T. 62, 65, 137, 231, 293
liquidity trap 489, 66, 114, 138 Meckling, W.H. 280, 293
Lloyd, C.L. 292 medical bills 239
loan rates 75, 268 medicines, yield 40
loanable funds theory 11617 Mehra, Y.P. 136, 293
loans 13, 52 Meier, G.M. 14, 293
demanding and supplying 117 Meinich, P. 261, 293
expansion of 124 Meiselman, D. 266, 293
to industrialists 239 Meltzer, A.H. 24, 64, 125, 128, 170, 257,
and investments 117, 123 283, 293
Loeb, H. 292 Melvin, M. 118, 293
Long, J.B. 208, 292 Menger, C. 246, 56, 293
Lucas, R.E. 205207, 212, 292 MER see marginal expected rate of
lump sum tax 136 return
Lutz, F. 117, 292 merchants, loans to 239
Meyer, L.H. 137, 293
macroeconomics Mill, John Stuart 19, 72, 168, 210, 293
fluctuations 169 Miller, M.H. 62, 71, 293
and microeconomics 141 Miller, N.C. 118, 294
performance 5, 55 Miller, P.J. 139, 294
process 71 Mints, L.W. 241, 294
variables 128 Mises, Ludwig von 55, 56, 57, 65, 202
Maier, C. S. 292 Mishkin, F. 126, 216, 294
Mankiw, N.G. 138, 170, 198, 209, 231, Moini, M. 25, 65, 294
292 Monetarism 1245
marginal Monetary
equalization idea 44 accommodation 227
returns, diminishing 46, 48, 51 analyses 1216
yield 57 approaches 58, 810
marginal expected rate of return (MER) to balance of payments (MABP)
438, 122, 127 2645
markets to exchange rates (MAXR) 2645
clearing 97, 112, 143, 171, 194, 201 contraction 17781
communication mechanism 176 disequilibrium 19, 33, 65, 7074, 91,
conditions 110 129
demand 27 hypothesis 111, 137,169
equilibrium or disequilibrium 83, 86 misperceptions of 934
exchange 98 economy 2830, 128
experiment 113, 145 equilibrium 12, 57, 64, 67, 144,
imbalances 95 expansion 206, 221, 2247
for money 76 and fall in output 1836
pressures 29 at home 252
purchases 87 in a recession 181
supply 27 and rise in output 1869
system 194 independence 256
transactions 97, 144 inflation and deflation 108, 109
Marshall, A. 61, 201, 292 instability 204
308 Index

policy, consensus model 129, 1379 Moss, L.S. 66, 294

restraint 229 Mosser, P.C. 290
shrinkage 250 multimarket disequilibrium 98
theory 12, 15861 Mundell, R.A. 8, 220, 258, 264, 294
transmission mechanism 1259
money 57, 81, 82, Napoleonic Wars 223
and balance of payments 244 National Recovery Act (NRA) 109
and banking system 237 Nelson, C.R.20, 290
barter and neutrality 1667 neutrality of money 11617
and bonds, analogy between 11516 new classical macroeconomics 204209
buffer role of 7071 new Keynesian economics 16970
as clearing device 268 New Zealand 235
creation 68, 224 Newton-Smith, W.H. 100, 294
definition of 1212 nominal
demand and supply 613, 67139 growth rate 166
disequilibrium 778 income 46, 57, 133
expansion 191 rises 132
financing 1326 interest rate 51, 118
growth rate 118, 208 money 47, 53, 76, 162, 229
holdings 50, 51, 56, 80, 87, 90, 96,
128 oil-price shocks 237
excessive 105 Okun, A.M. 195, 216, 217, 240, 294
values of 146 old age 273
home and foreign 78, 79 Olson, M. 195, 294
markets 63, 83, 84, 116 OPEC 237
new 115, 224 open-market operations 45, 106, 122,
nominal quantity 109 202, 244
in an open economy 24266 Orr, D. 62, 71, 293
origin of 246 output 67, 69, 102
paper 28 oversaving 107108
shortage 11415 overtime work 1867
stable 227
stock 72, 77, 174 painting, yield on a 53
substitutes and yield 535 paper money 29
supply 1314, 64, 757, 912, 100, Parkin, M. 41, 285
11213, 145, 182 partial-equilibrium setting 116, 117
change in 8081 Patinkin, Don 945,100101, 11317,
demand-determined 2456 1437, 14956, 15877, 2945
under fixed rates 244 monetary theory 14168
growth 46, 210, 237 payments 17
policy 68 deficit 245
uniqueness of 689 schedules, adjustment of 114
unit 28, 29, 108 surplus 257
yield on 3541 Pazos, F. 228, 295
Moore, B.J. 294 pegged exchange rate 68
Moore, G.R. 231, 286 pegging operations 119
Morgan, M.V. 65, 139, 294 Pesek, B.P. 295
mortgages 103 peso appreciation 254
debts 222 Pettengill, J. 216, 295
payments 233 Phelps, E.S. 198, 210, 295
 Index 309

Phillips, A.W. H. 189, 212, 295 cutbacks 108, 109

Phillips curve 20912, 23035 economy 158, 278
Pigou, A.C. 126, 158, 295 function 412
plant and equipment 228 loss 16
Plosser, C.I. 208, 209, 290, 292, 296 profit 3, 123, 219
population 2, 16, 29 and loss 23
portfolios maximizing 95
adjustment 46 property values 233
assets 43, 99 publishers 218
balance effect 45, 127 purchase 23
equilibrium 436, 51 purchasing power 39, 52, 55, 63, 118,
Poterba, J. M. 136, 295 124
pound sterling 242 comparison 261
poverty 95 of dollar 240
Prescott, E. 234, 290 loss of 52
price and wage of money 73, 93, 197, 200
adjustments 91, 179, 198, 232 parity 26062
inflation and deflation 108, 109, 234 real 163
level, trends 70, 227, 228 size of money 143
stickiness 1938 total 47
strategies 195
prices 12, 45, 67, 109, 111, 193, 233 quantity
flexibility 4, 73, 96, 200 of money, real 77, 87
and incomes 120, 128 theory 73, 141, 147, 159,
inflation and deflation 4, 10, 57, 115, and monetarism 1245
212, 217
level 34, 47, 55, 56, 73, 124, 147, 160, Rabin, A.A. 74, 81, 84, 117, 139, 207,
2289 210, 252, 264, 282, 295
and money supply 144 Radcliffe Committee, London 295
mechanism 24750, 255 Radcliffe Report 12, 13
yield theory 467 Radford, R.A. 25, 295
and output, split 19092 rate of interest see interest rates
pattern and level of 110 rational expectations (RE) 204207
and production 26 real
relative 29, 145, 161, 162 assets 46
and resource allocation 201 -bills doctrine 68, 224, 239
rises 112, 188 capital formation 24, 50
setters 95, 200, 228, 229, 234 cash balances 45, 51, 55, 57, 128, 141,
and wages 92, 94, 21718 1434, 161, 162, 220, 227, 236, 238
excessive 107 economic activity 29, 230, 249
fall in 108 estate 219, 240
stickiness 130, 169 income 2, 67, 176
pricing 122, 200 terms of exchange 29
primary commodities 198 wage 57, 181
prisoner-of-war camps, World War II 25, wealth 219
26 recession 3, 19, 181, 227
private holdings 132 and unemployment 225
production 84, 111, 228 recovery 239
and consumption 85 record-keeping 27
costs, reduction of 195 role of money 65