Monetary Theory

Conventionally, monetary problems have been examined with reference to a monetary framework which has little to do with the real world of banking. The purpose of this volume is to provide an alternative analysis to monetary economics based on the distinctive properties of bank money. In Monetary Theory: National and International the author argues that a new approach is needed which will be capable of providing modern analytical instruments based on the intrinsic nature of bank money. This analysis is based on the principles of book entry money and monetary problems are investigated from a structural point of view. The book: analyses money by referring directly to bank's book entries; shows that the distinction between money and income is rooted in the everyday practice of central and secondary banks; examines exchange rate instability and financial crisis; puts forward an alternative proposal for European Monetary Union