Modeling Monetary Economies

by Bruce Champ

Thoroughly updated and expanded with a new chapter on blockchain and increased coverage of cryptocurrency, as well as new data, this established advanced undergraduate textbook approaches the subject via first principles. It builds on a simple, clear monetary model and applies this framework consistently to a variety of monetary questions. Starting with trade being mutually beneficial, the authors demonstrate that money makes people better off, and that government money competes against other means of payments, including other types of government payments. After developing each of these topics, the book tackles the issue of money competing against other stores of value, examining issues associated with trade, finance, and modern banking. From simple economies to modern economies, the authors address the role banks play in making more trade possible, concluding with the information problems plaguing modern banking.

Genres: Economics, Textbooks

420 pages, Paperback

First published January 1, 1993

Reviews

[Odile · Rating 5 out of 5]

Dry read but very clear explanation of macroeconomics concepts

[Yasoon · Rating 4 out of 5]

I read this book as a source for an Advanced Macroeconomics lecture.
First half, clearly explains the OLG model an different scenarios resulting to inflation & deflation, including population, monetary base, etc.

[João Ritto · Rating 4 out of 5]

Reasonable treatment of monetary economics in a textbook way that could be used to accompany a course. Each chapter develops an idea about monetary economics and presents a model that can illustrate the point. The core model, however, is an overlapping generations model which is no longer the state-of-the-art nowadays. In fact, there is now a general perception that it is not overlapping generations that explain the need for money, with models of double-coincidence-of-wants taking the lead.

Generally, I would say this is an interesting book for an undergraduate level, but if you want to understand more about monetary economics, you will have to proceed to other kinds of models. Specifically, I would advise you to read about the Fiscal Theory of the Price Level which for me is really the most coherent theory around.