The purpose of this paper is to discuss some of the models used in New Monetarist Economics, which is our label for a body of recent work on money, banking, payments systems, asset markets, and related topics. A key principle in New Monetarism is that solid microfoundations are critical for understanding monetary issues. We survey recent papers on monetary theory, showing how they build on comm...

This essay articulates the principles and practices of New Monetarism, our label for a recent body of work on money, banking, payments, and asset markets. We first discuss methodological issues distinguishing our approach from others: New Monetarism has something in common with Old Monetarism, but there are also important differences; it has little in common with Keynesianism. We describe the p...

We motivate and provide an overview to New Monetarist Economics. We then brie‡y describe the individual contributions to the Macroeconomics Dynamics special issues on money, credit and liquidity.

This study ofers another perspective to the injlationary trend in Nigeria that incorporates monetarist, open economy and structural features of the economy. The main argument is that variation in the parallel market exchange rate was one of the determinants qfprice level behavior in Nigeria durittg the period, 1971 I 995. A partial equilibrium model based on micro,foundations is solved for the ...

A central feature of the monetarist approach to the problem of inflation is a preannounced gradual reduction in monetary growth. This reduction is to be sustained until a monetary growth consistent with a zero, or an acceptably low, target rate of inflation is reached. Thereafter, monetary growth is to be held constant at this new rate. The specifics of this prescription differ by the type of m...