Five Decades Developments in Monetary Economics (in Persian)

The main purpose of this paper is analyzing the major developments in monetary theory and policy, particularly during 1960-2010. This paper divides these developments in five different periods to be reviewed. The first period (the period prior to 1929) in the evolution of monetary economics, when money was seen as an important determinant of economic activities and stable growth of the money supply was a pre-requisite for stable and continuous economic growth. The second period (from 1929 through the early 1960s), is included the emergence of Keynesian school and when money and monetary policy were regarded as relatively unimportant in terms of understanding the economy and how government could achieve economic stability. The third period (from early 1960s to the 1970s), encompasses the emergences of Monetarist school and Keynesians versus monetarists. The fourth period (from early 1970s to the end of 1980s) reflects increasing criticism of the Keynesian views by monetarists, rational expectation and supply-siders .The fifth period (from early 1990s to 2010s), reflects theoretically a new monetary developments (new Keynesians, new consensus and new monetarists), real world experience in monetary policy (inflation targeting), empirical investigation and modeling of a variety of new money in the economy and the evolutions of the so-called DSGE (dynamic stochastic general equilibrium) models. Having reviewed the half of a century developments in monetary economics one can undoubtedly conclude that monetary economics experienced fundamental changes which encouraged new empirical studies in this area.