Studies in Banking and International Finance – serie

Monetary and exchange rate policies of national monetary authorities, together with certain of their consequences, provide the common theme for the studies in this volume.

The contributors in this collection of papers examine the conduct and consequences of national macroeconomic policy in a world of economically independent countries. The book's main themes include the effect of deregulation and financial innovation and of budget deficits on monetary policy, the role of exchange rates in the international transmission of disturbances of a monetary or fiscal origin, the effectiveness of price controls in moderating the economic cost of deflationary macroeconomic policies and the implications of co-operative versus non-cooperative approaches to policy under conditions of economic interdependence.

This volume is the second collection of the series of lectures, held annually at City University, London, in honour of Henry Thornton, the renowned 19th Century monetary economist.

The recession which many countries experienced in the early 1990s had certain unusual aspects. Most notably, and common to all countries, was the behaviour of asset prices relative to the general price level. In consequence, reasons were sought to explain the special characteristics of the recession and as a result of the behaviour of asset prices attention turned to 'Debt-Deflation Theories' associated in different forms with Keynes and Irving Fisher. The contributors to this volume discuss the significance of debt deflation. Their striking common feature is that, on the evidence presented here, the behaviour of asset prices should not be of great concern to policy makers, or to those attempting to understand economic behaviour. However, residual doubts remain over the Japanese case.

This volume is the second collection of the series of lectures, held annually at City University, London, in honour of Henry Thornton, the renowned 19th Century monetary economist.