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This book is a collection of monetary essays by the economist Leland Yeager, which deals with several topics but mainly the topic of 'monetary disequilibrium'. This is very much a monetarist collection, and the book itself is a series of essays divided into four parts. Although I think that two of the sections are economically problematic, I highly recommend the book as a whole due to its lucidity and the overall . The book uses only a bare minimum of mathematics and jargon and is therefor highly suitable for someone relatively new to monetary economics; it would be a very good first purchase for someone wanting to look into the subject. The essays deal with pure theory of why different monetary shocks will affect the economy and how; there is little by way of historical study and times series and so forth.
In any event, the book is divided into four sections and I will comment briefly on each of them. Part one is 'Monetary Disequilibrium and its consequences' which is an excellent section, especially the essay 'A Cash Balance Interpretation of Depressions.' The section discusses various aspects of monetarism, and in particular 'monetary disequilibrium.' What he means by this is the following: if people demand to hold more money at the current price of money, that is to say the price level, than actually exists, the price of money must rise, which is to say that the price level must fall, in order to cut off this demand and restore equilibrium in the market for money. It's a very elegant and convincing idea, and it's well presented in the book. This section is unreservedly good.
Section 2 is called 'Monetary Misconceptions', which treats several topics but mainly argues against a Keynesian economist James Tobin, who wrote an article called 'Central Banks as Creators of Money'.Read more ›
Great book. It gives you a different view on why the great depression turned great. I would recommend it to people who want to have a world wide view on the great depression and not only about the USA.
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