Buiter, Willem H. (2005) New developments in monetary economics: two ghosts, two eccentricities, a fallacy, a mirage and a mythos. 2004 Royal Economic Society Hahn Lecture. The Economic Journal, 115 (502). pp. 1-31. ISSN 0013-0133
Full text not available from this repository.Abstract
Monetary theory and policy are part of intertemporal public finance. The two ghosts are the liquidity trap and the real balance effect. The eccentricities are negative nominal interest rates and the helicopter drop of money. The fallacy is the Fiscal Theory of the Price Level, a logically inconsistent theory of the link between the government's intertemporal budget constraint and the general price level. The mirage is the prediction that financial deregulation and technical change in the payments and settlements technology will cause monetary policy to lose its capacity to influence even nominal economic variables. Mythos refers to the independent central bank.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1111/(IS... |
| Additional Information: | © 2005 Royal Economic Society |
| Divisions: | European Institute |
| Subjects: | H Social Sciences > HG Finance |
| Date Deposited: | 02 Sep 2008 08:25 |
| Last Modified: | 11 Dec 2024 22:52 |
| URI: | http://eprints.lse.ac.uk/id/eprint/16894 |
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