Monetary Theory and Public Policy

1. Introduction: The Significance of Monetary Analysis and Policy PART I 2. The Internal Value of Money · The Quantity Theory of Money · Determinants of Transaction Variables · An Evaluation of the Transaction Theory · The Income-Flow Equation of Exchange · Cash-Balance Equation of Exchange 3. Creation and Destruction of Money · Creation of Bank Credit · Multiple Credit Expansion By The Banking System · The Destruction of Bank Credit · The Creation and Destruction of Money by the State 4. The Theory of Inflation · Concept of the Inflationary Gap · Inflation and Full Employment · Analysis of Inflationary Pressures · Effects of Inflation · Inflationary Boom and Bust · Inflation and Deflation 5. Anti-Inflation Policies · Monetary Measures · Fiscal Measures · Nonmonetary Measures PART II 6. The Liquidity-Preference Theory · Liquidity-Preference · Liquidity-Preference Theory of Interest · The Interest Rate and Investment 7. Interest Policy and Full Employment · Rationale of the Low Interest Rate · Some Deterrents to Low-Interest Policy 8. Non-Keynesian Theories of Saving and Investment · Classical Savings-Investment Theory · Under consumption Theory 9. Aggregate Demand and National Income · Aggregate Demand and Employment · Concept of Gross National Product 10. The Consumption Function · Concepts of the Propensities to Consume and to Save · Some Relevant Implications of Keynes' Law · Factors Affecting the Consumption Function 11. Savings and Investment · Savings-Investment Equilibrium · Underemployment Equilibrium · Determinants of Investment 12. The Multiplier and Acceleration Theories · The Multiplier Theory · The Acceleration Theory 13. Secular Underemployment Equilibrium · Statement of the Problem · Factors of Secular Over saving · Factors of Secular Under investment 14. Measures to Promote Investment · Modification of the Corporate Income Tax · 'Pump Priming' · 'Compensatory Spending' · Wage Reduction · Credit Policy · The Reservoir Plan 15. Measures to Raise the Consumption Function · Income Redistribution · Wage Policy · Social Security · Easy Consumer Credit · Other Measures for a Higher Consumption Function 16. Epilogue on Full Employment PART III 17. The External Value of Money · Stable Exchange Rates · Specie-Flow-Price Mechanism · Devaluation 18. The External Value of Money · The Purchasing Power Parity Theory · Basic Defects of the Parity Theory · The Balance-of-Payments Theory of Exchange Rates · The Manipulation of Exchange Rates 19. The International Monetary Fund · Keynes' Basic Proposals · The Fund and Exchange Rates · The Fund and Exchange Control · The Fund's Lending Operations 20. Monetary Sovereignty and International Equilibrium · The Specialization vs. Payment Approach · The Mechanism of International Spread of Depression · A 'Chronic Shortage of Dollars' · Principles and Instruments of Monetary Sovereignty 21. Foreign Investment, The World Bank, and Employment · Foreign Investment and Cyclical Unemployment · Foreign Investment and Secular Stagnation Conclusions