Preface to Money and the Economy

Apostolos Serletis, MONEY AND THE ECONOMY, World Scientific Publishing Co., 2006

Posted: 2 Oct 2009

See all articles by Apostolos Serletis

Apostolos Serletis

University of Calgary - Department of Economics

Date Written: August 8, 2006

Abstract

This book provides a comprehensive and systematic introduction to the problem of the definition of money and investigates the gains that can be achieved by a rigorous use of microeconomic- and aggregation-theoretic foundations in the construction of monetary aggregates. It provides readers with key aspects of monetary economics and macroeconomics, including monetary aggregation, demand systems, flexible functional forms, long-run monetary neutrality, the welfare cost of inflation, and nonlinear chaotic dynamics.

This book offers the following conclusions: the simple-sum approach to monetary aggregation and log-linear money demand functions, currently used by central banks, are inappropriate for monetary policy purposes; the choice of monetary aggregation procedure is crucial in evaluating the welfare cost of inflation; the inter-related problems of monetary aggregation and money demand will be successfully investigated in the context of flexible functional forms that satisfy theoretical regularity globally, pointing the way forward to useful and productive research.

Keywords: Monetary Aggregation, Demand for Money, Demand Systems, Flexible Functional Forms, Welfare Cost of Inflation, Money-Income Causality, Nominal Stylized Facts

Suggested Citation

Serletis, Apostolos, Preface to Money and the Economy (August 8, 2006). Apostolos Serletis, MONEY AND THE ECONOMY, World Scientific Publishing Co., 2006. Available at SSRN: https://ssrn.com/abstract=1479963

Apostolos Serletis (Contact Author)

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada
403 220-4091 (Phone)
403 282-5262 (Fax)

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