Advanced Search
MyIDEAS: Login

Monetary plurality in economic theory

Contents:

Author Info

  • Ould Ahmed, Pepita
  • Marques-Pereira, Jaime
  • Le Maux, Laurent
  • Desmedt, Ludovic
  • Blanc, Jerome
  • Théret, Bruno

Abstract

The objective of this article is to identify the monetary plurality in economic theory. We will try to throw light on the way in which theories are attracted towards both unicity and plurality, and more specifically by unification and diversification of money. It should also be noted, in this respect, that the economics of money has undergone considerable development since the 1970s. A survey of the diverse theories, whether mainstream or not, static or dynamic, holistic or individualistic, will reveal the surprising amount of attention devoted to the problem of monetary unicity and/or plurality. We base our presentation on two lines of thought: -The first of these lines concerns a situation of general equilibrium, as opposed to theories giving place to the forms of disequilibrium and regime-crises. The general equilibrium theories usually see money as a financial asset and assume that it is neutral at least over the long term; theories of the second type, on the contrary, see money as a necessary condition for the development of trade, acknowledging that it influences the system of relative prices and consequently the dynamics of production. Thus money is presumed to be totally neutral (“super-neutral”) in the New Classical Economics in the manner of Lucas (1972, 1995) and in the New Monetary Economics initiated by Black (1970) and Fama (1980). On the contrary, it is not neutral according to neo-Mengerian approaches and to those that are neo-Marxist, Chartalist and post-Keynesian. -The second line of thinking revolves round the relationship between economic theories and the question of the unicity or plurality of money as a norm to be established. This relationship is often linked to the role assigned by the various approaches to finance. For example, the macroeconomics of the New Classical Economics school, in dealing with monetary “friction” within general equilibrium theory, maintains an approach that is largely “unitary”, seeking to integrate it into its framework. In this respect it opposes the financial views of the New Monetary Economics, that are based on a pluralist notion of money, aiming moreover to ensure that it could be dispensed it with the world of reality. Similarly, neo-Mengerian economists, who are pluralist and see financing as the heart of the proper organisation of money, are opposed to the unitarian approaches of Marxist, Chartalist and post-Keynesian economists. Our survey of contemporary theories will give rise to a typology of the forms of monetary unicity and plurality, framing a new reading of monetary theories.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/11496/1/Monetary%20Plurality.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/11496.

as in new window
Length:
Date of creation: May 2013
Date of revision:
Handle: RePEc:dau:papers:123456789/11496

Contact details of provider:
Web page: http://www.dauphine.fr/en/welcome.html
More information through EDIRC

Related research

Keywords: École néo-classique d'économie politique; Économie politique; Économie monétaire; Monnaie;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Hall, Robert E, 1982. "Monetary Trends in the United States and the United Kingdom: A Review from the Perspective of New Developments in Monetary Economics," Journal of Economic Literature, American Economic Association, vol. 20(4), pages 1552-56, December.
  2. Kiyotaki, Nobuhiro & Wright, Randall, 1991. "A contribution to the pure theory of money," Journal of Economic Theory, Elsevier, vol. 53(2), pages 215-235, April.
  3. George A. Selgin & Lawrence H. White, 1994. "How Would the Invisible Hand Handle Money?," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1718-1749, December.
  4. Cowen, Tyler & Kroszner, Randall, 1987. "The Development of the New Monetary Economics," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 567-90, June.
  5. McCallum, Bennett T., 1983. "The role of overlapping-generations models in monetary economics," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 18(1), pages 9-44, January.
  6. White, Lawrence H, 1984. "Competitive Payments Systems and the Unit of Account," American Economic Review, American Economic Association, vol. 74(4), pages 699-712, September.
  7. Laurence Scialom, 1995. "Les modèles de paiements concurrentiels : éléments d'analyse critique ," Revue Économique, Programme National Persée, vol. 46(1), pages 35-55.
  8. Klein, Benjamin, 1974. "The Competitive Supply of Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 6(4), pages 423-53, November.
  9. Fama, Eugene F., 1980. "Banking in the theory of finance," Journal of Monetary Economics, Elsevier, vol. 6(1), pages 39-57, January.
  10. Robert J. Shiller, 1998. "Indexed Units of Account: Theory and Assessment of Historical Experience," NBER Working Papers 6356, National Bureau of Economic Research, Inc.
  11. Neil Wallace, 1979. "Why markets in foreign exchange are different from other markets," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall.
  12. Lucas, Jr., Robert E., 1995. "Monetary Neutrality," Nobel Prize in Economics documents 1995-1, Nobel Prize Committee.
  13. Hall, Robert E., 1983. "Optimal fiduciary monetary systems," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 33-50.
  14. Lawrence H. White, 1989. "What Kinds of Monetary Institutions Would a Free Market Deliver?," Cato Journal, Cato Journal, Cato Institute, vol. 9(2), pages 367-403, Fall.
  15. Chang, Roberto, 1994. "Endogenous Currency Substitution, Inflationary Finance, and Welfare," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(4), pages 903-16, November.
  16. Leland Yeager, 1999. "Should Austrians Scorn General-Equilibrium Theory?," The Review of Austrian Economics, Springer, vol. 11(1), pages 19-30, January.
  17. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
  18. Kiyotaki, Nobuhiro & Wright, Randall, 1993. "A Search-Theoretic Approach to Monetary Economics," American Economic Review, American Economic Association, vol. 83(1), pages 63-77, March.
  19. Barro, Robert J. & Plosser, Charles I., 1983. "Alternative monetary standards : Introduction," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 1-5.
  20. Kocherlakota, Narayana R., 1998. "Money Is Memory," Journal of Economic Theory, Elsevier, vol. 81(2), pages 232-251, August.
  21. Sumner, Scott B, 1990. "The Forerunners of "New Monetary Economics" Proposals to Stabilize the Unit of Account," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 22(1), pages 109-18, February.
  22. Sumner, Scott, 1989. "Using Futures Instrument Prices to Target Nominal Income," Bulletin of Economic Research, Wiley Blackwell, vol. 41(2), pages 157-62, April.
  23. Robert E. Hall, 1982. "Explorations in the Gold Standard and Related Policies for Stabilizing the Dollar," NBER Chapters, in: Inflation: Causes and Effects, pages 111-122 National Bureau of Economic Research, Inc.
  24. James A. Dorn, 1989. "Introduction: Alternatives to Government Fiat Money," Cato Journal, Cato Journal, Cato Institute, vol. 9(2), pages 277-294, Fall.
  25. Friedman, Milton, 1984. "Financial Futures Markets and Tabular Standards," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 165-67, February.
  26. W. William Woolsey, 1992. "The Search for Macroeconomic Stability: Comment on Sumner," Cato Journal, Cato Journal, Cato Institute, vol. 12(2), pages 475-485, Fall.
  27. Yeager, Leland B, 1994. " Mises and Hayek on Calculation and Knowledge," The Review of Austrian Economics, Springer, vol. 7(2), pages 93-109.
  28. Schnadt, Norbert & Whittaker, John, 1993. "Inflation-Proof Currency? The Feasibility of Variable Commodity Standards," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 214-21, May.
  29. Leland B. Yeager & Robert L. Greenfield, 1989. "Can Monetary Disequilibrium Be Eliminated?," Cato Journal, Cato Journal, Cato Institute, vol. 9(2), pages 405-428, Fall.
  30. George Selgin, 2003. "Adaptive Learning and the Transition to Fiat Money," Economic Journal, Royal Economic Society, vol. 113(484), pages 147-165, January.
  31. Hoover, Kevin D, 1988. "Money, Prices and Finance in the New Monetary Economics," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 150-67, March.
  32. Martin Uribe, 1995. "Hysteresis in a simple model of currency substitution," International Finance Discussion Papers 509, Board of Governors of the Federal Reserve System (U.S.).
  33. Kiyotaki, Nobuhiro & Wright, Randall, 1989. "On Money as a Medium of Exchange," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 927-54, August.
  34. Fama, Eugene F., 1985. "What's different about banks?," Journal of Monetary Economics, Elsevier, vol. 15(1), pages 29-39, January.
  35. Leland B. Yeager, 1989. "A Competitive Payments System: Some Objections Considered," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 11(3), pages 370-377, April.
  36. Federico A. Sturzenegger, 1992. "Inflation and Social Welfare in a Model with Endogenous Financial Adaptation," UCLA Economics Working Papers 658, UCLA Department of Economics.
  37. Greenfield, Robert L & Woolsey, W William & Yeager, Leland B, 1995. "Is Indirect Convertibility Impossible? Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 293-97, February.
  38. Roland Vaubel, 1986. "Currency Competition versus Governmental Money Monopolies," Cato Journal, Cato Journal, Cato Institute, vol. 5(3), pages 927-947, Winter.
  39. Duca, John V. & VanHoose, David D., 2004. "Recent developments in understanding the demand for money," Journal of Economics and Business, Elsevier, vol. 56(4), pages 247-272.
  40. Black, Fischer, 1972. "Active and Passive Monetary Policy in a Neoclassical Model," Journal of Finance, American Finance Association, vol. 27(4), pages 801-14, September.
  41. Black, Fischer, 1974. "Uniqueness of the price level in monetary growth models with rational expectations," Journal of Economic Theory, Elsevier, vol. 7(1), pages 53-65, January.
  42. Kareken, John & Wallace, Neil, 1981. "On the Indeterminacy of Equilibrium Exchange Rates," The Quarterly Journal of Economics, MIT Press, vol. 96(2), pages 207-22, May.
  43. Fama, Eugene F., 1983. "Financial intermediation and price level control," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 7-28.
  44. W. William Woolsey, 1994. "Stabilizing The Expected Price Level In A Bfh Payments System," Contemporary Economic Policy, Western Economic Association International, vol. 12(2), pages 46-54, 04.
  45. Yeager, Leland B, 1999. " Should Austrians Scorn General-Equilibrium Theory?," The Review of Austrian Economics, Springer, vol. 11(1-2), pages 19-30.
  46. Leland B. Yeager, 2010. "Privatizing Money," Cato Journal, Cato Journal, Cato Institute, vol. 30(3), pages 417-438, Fall.
  47. Federico Sturzenegger, 1992. "Inflation and Social Welfare in a Model With Endogenous Financial Adaptation," NBER Working Papers 4103, National Bureau of Economic Research, Inc.
  48. Philip Arestis, 2002. "Financial crisis in Southeast Asia: dispelling illusion the Minskyan way," Cambridge Journal of Economics, Oxford University Press, vol. 26(2), pages 237-260, March.
  49. Narayana Kocherlakota & Thomas Krueger, 1999. "A Signaling Model of Multiple Currencies," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(1), pages 231-244, January.
  50. Neil Wallace, 1983. "A legal restrictions theory of the demand for "money" and the role of monetary policy," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win.
  51. Neil Wallace, 1977. "Why the Fed should consider holding M0 constant," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sum.
  52. Dowd, Kevin, 1994. "A Proposal to End Inflation," Economic Journal, Royal Economic Society, vol. 104(425), pages 828-40, July.
  53. White, Lawrence H, 1987. "Accounting for Non-interest-Bearing Currency: A Critique of the Legal Restrictions Theory of Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 19(4), pages 448-56, November.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dau:papers:123456789/11496. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexandre Faure).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.