This paper articulates the principles and models of New Monetarism, which is our label for a body of recent work on money, banking, payments systems, and asset markets. The approach that has something in common with Old Monetarism, but also some key di¤erences. It has little in common with New Keysianism. A series of models is described. This illustrates what has been done in recent monetary th...

The 2008 crisis highlighted the linkages between the financial sector and the real economy, as well as between the corresponding stabilization policies: macroprudential and monetary (M&Ms). Our game-theoretic analysis focuses on the increasingly adopted separation setup, in which M&Ms are conducted by two different institutions (e.g. in Australia, Canada, Eurozone, Sweden, Switzerland and the U...

The financial sector received little attention in the literature on macroeconomic policy, growth and development until fairly recently. In fact, post-war macroeconomics in both the Keynesian and monetarist traditions paid little or no attention to banks and other financial institutions. This is somewhat ironic because both approaches were well aware of the role of banks in propagating the Great...

Sargent and Wallace (1981) published "Some Unpleasant Monetarist Arithmetic" 40 years ago. Their central message was that a bank may not have the power to determine long-run rate of inflation without fiscal support.

We construct a model that captures New Monetarist ideas in order to explain post-Great Recession observations on inflation, nominal interest rates, and real interest rates. When finance constraints bind, the model can deliver low real interest rates and positive rates of inflation at the zero lower bound. Optimal monetary policy in the face of a financial crisis shock implies a positive nominal...

The study of the Keynesian-monetarist synthesis macroeconomic model on Indonesia’s balance payments combines goods market and money approaches to theory. This used three models shortness payments: Keynesian, monetarism, Keynesian monetarism methods. Data was from 1998 2019 International Monetary Fund, international financial statistics, sheet book Bank Indonesia statistics report. data is analy...