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This paper briefly summarizes the orthodox approach to banking, finance, and money, and then points the way toward an alternative based on socioeconomics. It argues that the alternative approach is better fitted to not only the historical record, but also sheds more light on the nature of money...
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theoretic approach to monetary policy. Leading theorists and practitioners of this view have indeed rejected the quantity theory … of money, and defended a return to the old Wicksellian idea of eliminating high levels of inflation by adjusting nominal … interest rates to changes in the price level. This paper evaluates these recent developments in the theory and practice of …
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Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous work (Cao & Illing, 2007), this paper analyses the adequate policy response to endogenous systemic liquidity risk. We analyse the feedback between lender of last resort policy and incentives of...
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