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Introduction

In: Issues in Finance and Monetary Policy

Author

Listed:
  • John McCombie
  • Carlos Rodríguez González

Abstract

Money and financial issues have been studied for several centuries and have played a central role in general discussions about the functioning of economies. Nevertheless, there exists among economists, and will probably continue to exist, a fierce debate over monetary relationships. Monetarists placed money as a central determinant of economic activity, at least in the short run, while Keynesians had already rejected the classical neutrality axiom of money in both the short and long run. Today, new Keynesians reject the classical dichotomy that has been revived in, for example, real business cycle theory.

Suggested Citation

  • John McCombie & Carlos Rodríguez González, 2007. "Introduction," Palgrave Macmillan Books, in: John McCombie & Carlos Rodríguez González (ed.), Issues in Finance and Monetary Policy, chapter 1, pages 1-7, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-80149-3_1
    DOI: 10.1057/9780230801493_1
    as

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