This upper level textbook for students in finance, labour economics and macroeconomics challenges the conventional view that money has no impact on production in the longer term. The resulting policy implications are also considered, in particular the desirability of an independent central bank

Since July 2007 the world economy has experienced a severe financial crisis originating in the U.S. housing market. The crisis has subsequently spread to the financial sectors in European and Asian economies and led to a severe worldwide recession. The existing literature on financial crises...