Money supply, money demand, and macroeconomic models

Recent Books quately explain unemployment. The second purpose of the book is to present an alternative approach to macroeconomics, derived in the main from the work of Michal Kalecki. The Kale&an alternative stresses the oligopolistic nature of capitalist bargaining, the importance of credit money largely created by the banking system, and the central role played by profits and investments. Monetary Policy and Modern Money Markets: Fixed versus MarketDetermined Deposit Rates. Michael G. Hadjimichalakis. Lexington, MA: Lexington Books, D.C. Heath, 1982. 249 pp. $27.95. The author, who has been a visiting scholar at the Federal Reserve Board, has attempted to present monetary policy in a framework that is “consistent with the real world” by incorporating three recent and important institutional changes: financial innovations, regulatory changes, and changes in the Federal Reserve Board’s own operating procedures. He presents clear, simple models which are designed to be compatible with the Federal Reserve’s own model and to be consistent with models explored by Tobin, Brunner and Meltzer and other economists. The book is directed towards academics and practitioners of monetary policy. Money Matters: A Keynesian Approach to Monetary Economics. Sheila C. Dow and Peter E. Earl. Totowa, NJ: Barnes and Noble Books, 1982. 270 pp. $28.50. The authors are British economists and the audience for the book would include advanced undergraduates, although the book is not precisely a textbook. Its purpose is to present a comprehensive exposition of monetary theory from a Post Keynesian standpoint with an attempt to “reinstate money to the central position given it by Keynes” and interpreted by Minsky, Shackle and others. The Scottish banking system is used as a case study. Very little math required. Money Supply, Money Demand, and Macroecorwmic Mod.els. Thomas M. Havrilesky and John T. Boorman. 2nd ed. Arlington Heights, IL: Harlan Davidson, 1982. 528 pp. ($17.95 paperbound). A companion textbook for advanced undergraduate courses in money and banking or macroeconomics, the authors have full discussions of money supply, money demand, and macroeconomic models as well as a range of relevant readings by such economists as Milton Friedman, Robert Rasche and others. The second edition has been substantially rewritten in light of new developments and 138

Recent Books includes new readings. Includes a Questions bibliography at the end of each chapter.

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Money, the Financial System, and Monetary Policy. Thomas F. Cargill. 2nd ed. Englewood Cliffs, NJ: Prentice-Hall, 1983. 568 pp. $23.95. This text is designed for a one-semester course in money and banking and its primary emphasis is on understanding the financial system and the formulation and execution of monetary policy. The second edition has been completely revised and several chapters rewritten in response to the drastic changes in the system since 1979. Each chapter ends with a summary, discussion questions, and an extensive bibliography. Calculus helpful but not required; presupposes some background in macroeconomics. Monetary Policy and the Financial System. Paul M. Horvitz and Richard A. Ward. 5th ed. Englewood Cliffs, NJ: Prentice-Hall, 1983. 577 pp. $23.95. Horwitz’s popular textbook has been completely rewritten with coauthor Ward. The focus is on providing an understanding of how the financial system operates by describing the structure of financial institutions and by giving students a taste of the problems faced by managers of financial institutions. Considerable attention is paid to monetary policy and reactions to policy changes. Introductory level. Monetary Trends in the United States and the United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867-1975. Milton Friedman and Anna J. Schwartz. National Bureau of Economic Research monograph. Chicago and London: University of Chicago Press, 1982. 672 pp. $48.00. This monumental study is the fourth and last of a series of books that had their origin in new estimates of the quantity of money in the United States. Its special task is to present a statistical and theoretical analysis of the relation between the quantity of money and other key economic magnitudes over periods longer than those dominated by cyclical fluctuations. Unlike the first three books, this includes comparable data for the United Kingdom. Post Keynesian Macrodynamics: A More General Theory. Michael Alan Salant. Washington, DC: Michael A. Salant Publisher, 1983. 174 pp. $24.00 ($16.00 paperbound). 139