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David Laidler on Monetarism

In: David Laidler’s Contributions to Economics

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  • Michael Bordo
  • Anna J. Schwartz

Abstract

David Laidler has always been a monetarist and was an important player in the debates marking the rise and fall of that doctrine. The literature on the demand for money was the focus of his primary contribution. He did pioneering work on the long-run demand for money function in the mid-1960s. In the four editions of his The Demand for Money from 1969 until 1993 he acted as the major-domo of the literature. Indeed his work was at the heart of the discussions over the longrun and short-run demand for money function, the stability of money demand, the missing money conundrum, the buffer stock approach, and the resurrection of long-run money demand. He also worked energetically in the 1960s, ‘70s and ‘80s on the keymonetarist theoretical issues of the transmission mechanism of monetary policy, the shortcomings of the IS-LM model, the short-run and long-run Phillips curve, and the monetary approach to the balance of payments.

Suggested Citation

  • Michael Bordo & Anna J. Schwartz, 2010. "David Laidler on Monetarism," Palgrave Macmillan Books, in: Robert Leeson (ed.), David Laidler’s Contributions to Economics, chapter 3, pages 44-59, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24841-0_3
    DOI: 10.1057/9780230248410_3
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    References listed on IDEAS

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    1. Laidler, David, 1988. "Some Macroeconomic Implications of Price Stickiness," The Manchester School of Economic & Social Studies, University of Manchester, vol. 56(1), pages 37-54, March.
    2. David Laidler, 1993. "Price Stability and the Monetary Order," Palgrave Macmillan Books, in: Kumiharu Shigehara (ed.), Price Stabilization in the 1990s, chapter 10, pages 331-356, Palgrave Macmillan.
    3. David Laidler, 1999. "The Quantity of Money and Monetary Policy," Staff Working Papers 99-5, Bank of Canada.
    4. Laidler, David, 1980. "The demand for money in the United States-- Yet again," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 12(1), pages 219-271, January.
    5. Laidler, David E W, 1976. "Inflation in Britain: A Monetarist Perspective," American Economic Review, American Economic Association, vol. 66(4), pages 485-500, September.
    6. Bordo, Michael D. & Jonung, Lars, 1990. "The long-run behavior of velocity: The institutional approach revisited," Journal of Policy Modeling, Elsevier, vol. 12(2), pages 165-197.
    7. Milton Friedman, 1959. "The Demand for Money: Some Theoretical and Empirical Results," NBER Chapters, in: The Demand for Money: Some Theoretical and Empirical Results, pages 1-29, National Bureau of Economic Research, Inc.
    8. Laidler, David, 1981. "Monetarism: An Interpretation and an Assessment," Economic Journal, Royal Economic Society, vol. 91(361), pages 1-28, March.
    9. Milton Friedman, 1971. "A Theoretical Framework for Monetary Analysis," NBER Books, National Bureau of Economic Research, Inc, number frie71-1, March.
    10. Taradas Bandyopadhyay, 1976. "Some Remarks on the Role of Money in One Sector Neoclassical Growth Model," University of Western Ontario, Departmental Research Report Series 7610, University of Western Ontario, Department of Economics.
    11. D. E. W. Laidler & J. M. Parkin, 1977. "Inflation: A Survey," Palgrave Macmillan Books,, Palgrave Macmillan.
    12. Hendry, David F. & Ericsson, Neil R., 1991. "Modeling the demand for narrow money in the United Kingdom and the United States," European Economic Review, Elsevier, vol. 35(4), pages 833-881, May.
    13. Laidler, David, 1981. "Some Policy Implications of the Monetary Approach to Balance of Payments and Exchange Rate Analysis," Oxford Economic Papers, Oxford University Press, vol. 33(0), pages 70-84, Supplemen.
    14. Laidler, David, 1978. "Money and money income: An essay on the `transmission mechanism'," Journal of Monetary Economics, Elsevier, vol. 4(2), pages 151-191, April.
    15. Gregory C. Chow, 1966. "On the Long-Run and Short-Run Demand for Money," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 111-111.
    16. David Laidler, 1966. "The Rate of Interest and the Demand for Money--Some Empirical Evidence," Journal of Political Economy, University of Chicago Press, vol. 74(6), pages 543-543.
    17. Buiter, Willem H, 1980. "The Macroeconomics of Dr. Pangloss: A Critical Survey of the New Classical Macroeconomics," Economic Journal, Royal Economic Society, vol. 90(357), pages 34-50, March.
    18. Laidler, David, 1973. "Monetarist Policy Prescriptions and Their Background," The Manchester School of Economic & Social Studies, University of Manchester, vol. 41(1), pages 59-71, March.
    19. Stephen M. Goldfeld, 1976. "The Case of the Missing Money," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(3), pages 683-740.
    20. Laidler, David, 1984. "The 'Buffer Stock' Notion in Monetary Economics," Economic Journal, Royal Economic Society, vol. 94(376a), pages 17-34, Supplemen.
    21. Stephen M. Goldfeld, 1973. "The Demand for Money Revisited," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(3), pages 577-646.
    22. David E. Laidler, 1988. "Taking Money Seriously," Canadian Journal of Economics, Canadian Economics Association, vol. 21(4), pages 687-713, November.
    23. Edmund S. Phelps, 1968. "Money-Wage Dynamics and Labor-Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 76(4), pages 678-678.
    24. Phelps, Edmund S & Taylor, John B, 1977. "Stabilizing Powers of Monetary Policy under Rational Expectations," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 163-190, February.
    25. David Laidler, 2003. "Monetary Policy without Money: Hamlet without the Ghost," University of Western Ontario, Departmental Research Report Series 20037, University of Western Ontario, Department of Economics.
    26. David Laidler, 1997. "Inflation Control and Monetary Policy Rules," Palgrave Macmillan Books, in: Iwao Kuroda (ed.), Towards More Effective Monetary Policy, chapter 4, pages 67-98, Palgrave Macmillan.
    27. Laidler, David, 1973. "Simultaneous Fluctuations in Prices and Output-A Business Cycle Approach," Economica, London School of Economics and Political Science, vol. 40(157), pages 60-72, February.
    28. David Laidler, 1966. "Some Evidence on the Demand for Money," Journal of Political Economy, University of Chicago Press, vol. 74(1), pages 55-68.
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    Cited by:

    1. Rockoff, Hugh & White, Eugene N., 2012. "Monetary Regimes and Policy on a Global Scale: The Oeuvre of Michael D. Bordo," MPRA Paper 49672, University Library of Munich, Germany, revised May 2013.
    2. Singleton,John, 2010. "Central Banking in the Twentieth Century," Cambridge Books, Cambridge University Press, number 9780521899093.

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    More about this item

    Keywords

    Monetary Policy; Money Supply; Money Demand; Phillips Curve; Central Bank Independence;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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