This paper develops a real-exchange production-coordination model in which price-setting firms produce complementary inputs that are converted into and traded for a final good produced by a competitive sector. A rigid real-price regime is shown to be consistent with both rational firm behavior...

This paper addresses the perspective of Hayek’s doctrine on monetary arrangements in the economy and his favorable argument for an international central bank over national central bank. I also discussed Hayek’s view on free banking (i.e. for the free issue of bank notes) that would enable...

Unlike Knut Wicksell, Eli Heckscher did not believe the time had arrived for “managed money” to replace the gold standard after World War I. The war had shown that only a gold standard could bind the central bank to a time-consistent policy with reasonable price stability. Heckscher likened...

Unlike Knut Wicksell, Eli Heckscher did not believe the time had arrived for "managed money" to replace the gold standard after World War I. The war had shown that only a gold standard could bind the central bank to a time-consistent policy with reasonable price stability. Heckscher likened the...

Este artículo propone una lectura simultánea de dos textos: La Teoría monetaria y el ciclo económico (1929) y Precios y producción (1931), con el objetivo de presentar la teoría de los ciclos económicos del joven Hayek, como un conjunto teórico congruente. Ambos textos poseen una unidad...

During 1930s and 1940s Josef Macek developed monetary theory leading to monetary policy recommendations which are deeply influenced by macroeconomic theory of John Maynard Keynes. Macek became leading Czech left-wing keynesian. His theory of money was nominalist and similarly to J. M. Keynes and...

In this paper I compare Friedman's expectations-augmented Phillips Curve model with Lucas' model on expectations and the neutrality of money and claim that they are underpinned by two different equilibrium concepts. Friedman's model is based on the stationary equilibrium conception, typical of...

This paper surveys the literature on monetary policy at the zero lower bound on nominal interest rates. Certain crucial insights regarding expectations have been neglected in recent research in this field. Taking this into account, the interactions between demand and supply shocks appear crucial...