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  1. The Review of Austrian Economics
  2. The Review of Austrian Economics : Volume 28
  3. The Review of Austrian Economics : Volume 28, Issue 1, March 2015
  4. Monetary equilibrium
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The Review of Austrian Economics : Volume 30
The Review of Austrian Economics : Volume 29
The Review of Austrian Economics : Volume 28
The Review of Austrian Economics : Volume 28, Issue 4, December 2015
The Review of Austrian Economics : Volume 28, Issue 3, September 2015
The Review of Austrian Economics : Volume 28, Issue 2, June 2015
The Review of Austrian Economics : Volume 28, Issue 1, March 2015
Entrepreneurial opportunity as the potential to create value
The role of ideas in political economy
Mises and prediction markets: Can markets forecast?
Monetary equilibrium
An alternative to the Laffer curve: Theory and consequences
Governance without a state? Policies and politics in areas of limited statehood meets positive political economy of anarchy: A review essay
Marcus Nunes and Benjamin Cole: Market monetarism: Roadmap to economic prosperity : Self-published, 2013. viii + 115 Pages. USD 6.99 (Kindle)
Eamonn Butler, Friedrich Hayek: The ideas and influence of the libertarian economist : Hampshire, Great Britain: Harriman House LTD, 2012. vii + 151
Francesco Boldizzoni, The poverty of Clio: Resurrecting economic history : Princeton, NJ: Princeton University Press, 2011. xi + 228 Pages. USD 39.50 (cloth)
The Review of Austrian Economics : Volume 27
The Review of Austrian Economics : Volume 26
The Review of Austrian Economics : Volume 25
The Review of Austrian Economics : Volume 24
The Review of Austrian Economics : Volume 23
The Review of Austrian Economics : Volume 22
The Review of Austrian Economics : Volume 21
The Review of Austrian Economics : Volume 20
The Review of Austrian Economics : Volume 19
The Review of Austrian Economics : Volume 18
The Review of Austrian Economics : Volume 17
The Review of Austrian Economics : Volume 16
The Review of Austrian Economics : Volume 15
The Review of Austrian Economics : Volume 14
The Review of Austrian Economics : Volume 13
The Review of Austrian Economics : Volume 12
The Review of Austrian Economics : Volume 11
The Review of Austrian Economics : Volume 10

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Monetary equilibrium

Content Provider Springer Nature Link
Author Hendrickson, Joshua R.
Copyright Year 2012
Abstract One implication of the concept of monetary equilibrium is that the money supply should vary with money demand. In a recent paper, Bagus and Howden (Rev Austrian Econ 24:383–402, 2011) argue that this conclusion is predicated on the assumption of price stickiness. The purpose of this paper is to suggest that the foundation of monetary equilibrium is the role of money as a medium of exchange. As such, changes in the demand for money result in changes in both nominal and real spending that are welfare-reducing. This proposition is then used to examine whether a monetary policy in which the central bank varies the money supply in response to money demand can be considered optimal. In addition, the paper considers how a free banking system with competitive note issuance would vary the money supply in response to changes in money demand. In both cases, the results are consistent with the concept of monetary equilibrium. In addition, these results can be obtained even when prices are perfectly flexible if trade is decentralized (i.e. not conducted in Walrasian markets). Price stickiness is therefore not a necessary condition to suggest that the money supply should vary with money demand.
Starting Page 53
Ending Page 73
Page Count 21
File Format PDF
ISSN 08893047
Journal The Review of Austrian Economics
Volume Number 28
Issue Number 1
e-ISSN 15737128
Language English
Publisher Springer US
Publisher Date 2012-08-22
Publisher Place Boston
Access Restriction One Nation One Subscription (ONOS)
Subject Keyword Free banking Nominal income targeting Public Finance & Economics Political Science Methodology and the History of Economic Thought
Content Type Text
Resource Type Article
Subject Economics, Econometrics and Finance
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