J. Laurence Laughlin versus Irving Fisher on the quantity theory of money, 1894 to 1913

2020 ◽  
Vol 72 (4) ◽  
pp. 1032-1049
Author(s):  
Robert W Dimand
Keyword(s):  
Federal Reserve ◽  
Price Level ◽  
Monetary Theory ◽  
Monetary Reform ◽  
Quantity Theory ◽  
Monetary System ◽  
Long Run ◽  
Economic Association ◽  
The Us ◽  
The University

Abstract In the controversy leading to the Federal Reserve Act of 1913, J. Laurence Laughlin of the University of Chicago and Irving Fisher of Yale were the leading opponent and proponent, respectively, of the quantity theory of money as the theoretical basis for reorganizing the US monetary system. Laughlin identified the quantity theory with bimetallist claims that monetizing silver would have lasting real benefits. Laughlin offered a cost of production theory of the value of gold as an alternative to the quantity theory, while his students published empirical critiques of the quantity theory. Fisher upheld the quantity theory as explaining price movements while distancing the theory from assertions of long-run non-neutrality of money. Laughlin and Fisher vigorously debated monetary theory and monetary reform, notably at American Economic Association meetings. Their confrontations illuminate the monetary controversies preceding the Federal Reserve Act, which reflected the views of Laughlin and Willis (adviser to Congressman Carter Glass) while rejecting the mandate to stabilize the price level proposed by Senator Owen and his adviser Fisher.

The Early Patinkin—Friedman Correspondence

1998 ◽  
Vol 20 (4) ◽  
pp. 433-448 ◽  
Author(s):  
Robert Leeson
Keyword(s):  
Oral Tradition ◽  
American Economic Association ◽  
Quantity Theory ◽  
Economic Association ◽  
The University

Don Patinkin (1922-95) was a co-author of the Keynesian neoclassical synthesis, and became engaged in several important controversies. One of them involved Milton Friedman's (1956) assertion about a supposed Chicago quantity theory “oral tradition.” From 1968 until his death, Patinkin hardly seemed to miss an opportunity of denigrating what he regarded as Friedman's “invention.” This controversy was taken to the 1970 American Economic Association (AEA) meeting by Harry Johnson (1971), and divided at least two economics departments, Chicago and the University of Western Ontario, where Patinkin and Johnson were frequent visitors, and where two influential monetarists, David Laidler and Michael Parkin, had migrated from Britain (Parkin, 1986; Patinkin, 1986).

scholarly journals Theoretical Problems of the International Monetary System

1967 ◽  
Vol 7 (1) ◽  
pp. 1-28 ◽  
Author(s):  
Harry G. Johnson
Keyword(s):  
Economic Policy ◽  
Exchange Rates ◽  
International Monetary System ◽  
Balance Of Payments ◽  
The Other ◽  
Monetary Reform ◽  
Monetary System ◽  
System Part ◽  
The University ◽  
Policy Problems

Since 1958, international economists have been greatly concerned with the problem of international monetary reform. Research and writing on this problem has taken one or other of two broad forms. Those economists most concerned with policy have concerned themselves with emphasizing the need for inter¬national monetary reform and propounding workable (negotiable) schemes for achieving it. International monetary theorists, on the other hand, have been concerned with the theoretical policy problems of achieving and maintaining balance-of-payments equilibrium in the present internaticnal monetary system of fixed exchange rates. They have also become concerned with the problems of the system as a monetary system. This paper belongs to the latter category. It seeks to outline the main propositions of the analysis of international economic policy and policy problems that have been developed by economists working in this field in recent years. Part I is concerned with the economic policy problems of maintaining both full employ¬ment and balance-of-payments equilibrium, first for a single country on a fixed exchange rate, then for two or more countries linked in a multi-country inter¬national monetary system. Part II is concerned with certain features of the present international monetary system, viewed as a monetary system. The analysis of Part I is Keynesian, that of Part II classical, in approach. Both parts draw heavily on papers presented at the University of Chicago Conference on Inter¬national Monetary Problems organized by R. A. Mundell, held at Chicago in September 1966.

scholarly journals Geldreform als Weg aus der Krise?

2015 ◽  
Vol 45 (179) ◽  
Author(s):  
Beat Weber
Keyword(s):  
The State ◽  
Monetary Theory ◽  
System Reform ◽  
Monetary Reform ◽  
Hybrid Nature ◽  
Monetary System

Monetary reform proposals can be characterized by their position taking on two fundamental debates within monetary theory: What is the nature of money (credit or asset)? Who should issue money (the state or private entities)? In opting for a radical departure from the hybrid nature of the current monetary system, reform proposals suffer from a gap between far reaching legitimacy claims and neglected functionality problems in monetary governance.

scholarly journals MACROECONOMETRIC STABILIZATION AND IMF POLICIES: A SURVEILLANCE OF INFLATION

2015 ◽  
Vol 23 (4) ◽  
Author(s):  
Christopher E.S. WARBURTON
Keyword(s):  
Money Supply ◽  
Time Series Data ◽  
Price Level ◽  
Empirical Work ◽  
Series Data ◽  
Long Run ◽  
The Us ◽  
Stabilization Policies ◽  
The Uk ◽  
Very High

This paper uses time series data from 1960 to 2012 to evaluate the long-run relationshipbetween aggregate money supply and changes in the general price level (inflation) for aselected group of countries with historically stable prices and episodes of very high inflation.Recent paradigmatic shifts from exchange-rate-based stabilization policies toconditionalities involving price stability have greatly influenced the empirical work of thispaper. Empirical results indicate that the money supply and inflation are cointegrated insome countries with high spells of inflation, such as Argentina, Brazil, and Mexico, but thatthe variables may not be cointegrated with each other for countries with prices that aregenerally and historically stable, such as the UK and the US. The paper highlights the need forgood quality governance, employment, and productivity in surveillance measures that aredesigned to obtain external balance.

St. Louis Models of the UK Economy

1978 ◽  
Vol 84 ◽  
pp. 65-69 ◽  
Author(s):  
K.G.P. Matthews ◽  
P.A. Ormerod
Keyword(s):  
Federal Reserve ◽  
The United States ◽  
Quantity Theory ◽  
Federal Reserve Bank ◽  
Long Run ◽  
Reserve Bank ◽  
Nominal Income ◽  
Short Run ◽  
National Output ◽  
The Uk

The economists at the Federal Reserve Bank of St Louis in the United States have produced over a number of years a series of models which amount to a reassertion of the short-run quantity theory of money. This theory has been summarised by Tobin as ‘in the short-run, nominal income is proportional to the supply of money, although changes in nominal income may affect output as well as prices’. In other words, it is postulated that in the short-run there is a large and rapid influence of monetary actions on nominal income relative to that of fiscal actions and, indeed, that fiscal action unaccompanied by changes in money has little net effect on national output even in the short-run. This is an extreme version of the monetarist position, given that most monetarists, including Friedman, choose to work in the framework of the long-run rather than the shortrun quantity theory.

Conference Reports

2004 ◽  
Vol 54 (3) ◽  
pp. 377-386
Author(s):  
Anita Pelle ◽  
László Jankovics
Keyword(s):  
Hungarian Academy ◽  
Economic Research ◽  
Foreign Direct Investments ◽  
Central Eastern Europe ◽  
Continuity And Change ◽  
Economic Association ◽  
Regional Committee ◽  
The University ◽  
Academy Of Sciences ◽  
European University

(1) The Halle Insitute for Economic Research (Institut für Wirtschaftsforschung Halle, IWH) in cooperation with the European University Viadrina, Frankfurt an der Oder held a conference on 13-14 May 2004 in Halle (Saale), Germany on Continuity and Change of Foreign Direct Investments in Central Eastern Europe. (Reviewed by Anita Pelle); (2) The University of Debrecen, Faculty of Economics and Business Administration in cooperation with the Regional Committee of the Hungarian Academy of Sciences and the Hungarian Economic Association organised an international symposium on the issue of Globalisation: Challenge or Threat for Emerging Economies on 29 April 2004 in Debrecen, Hungary. (Reviewed by László Jankovics)

The Impact of Monetary and Fiscal Policies on the Stock Market in the United States (U.S); Evidence from Linear ARDL Framework

2020 ◽  
Vol 11 (1) ◽  
pp. 132-132
Author(s):  
Aref Emamian
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Fiscal Policies ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Impact

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

A University Education

2017 ◽  
Author(s):  
David Willetts
Keyword(s):  
Higher Education ◽  
Modern Society ◽  
University Education ◽  
Modern World ◽  
Controversial Issues ◽  
The Us ◽  
The Individual ◽  
The University ◽  
First Time ◽  
The Relationship

Universities have a crucial role in the modern world. In England, entrance to universities is by nation-wide competition which means English universities have an exceptional influence on schools--a striking theme of the book. This important book first investigates the university as an institution and then tracks the individual on their journey to and through university. In A University Education, David Willetts presents a compelling case for the ongoing importance of the university, both as one of the great institutions of modern society and as a transformational experience for the individual. The book also makes illuminating comparisons with higher education in other countries, especially the US and Germany. Drawing on his experience as UK Minister for Universities and Science from 2010 to 2014, the author offers a powerful account of the value of higher education and the case for more expansion. He covers controversial issues in which he was involved from access for disadvantaged students to the introduction of L9,000 fees. The final section addresses some of the big questions for the future, such as the the relationship between universities and business, especially in promoting innovation.. He argues that the two great contemporary trends of globalisation and technological innovation will both change the university significantly. This is an authoritative account of English universities setting them for the first time in their new legal and regulatory framework.

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