Chapter 3. What Determines the Value of Money?

Chapters in this book

1. Frontmatter i
2. Contents v
3. Preface vii
4. Introduction The Real Problem Was Nominal 1
5. Part I. The Value of Money
6. Chapter 1. Cognitive Illusions in Economics 21
7. Chapter 2. The Value of Money and Money Illusion 30
8. Chapter 3. What Determines the Value of Money? 37
9. Chapter 4. The Quantity Theory of Money and the Great Inflation 51
10. Chapter 5. Money at the Extremes: Hyperinflation and Deflation 64
11. Chapter 6. It’s (Almost) All about Expectations 76
12. Part II. The Dance of the Dollar
13. Chapter 7. The Great Depression and the AS-AD Model 95
14. Chapter 8. One Derivative beyond Hume 108
15. Chapter 9. Rational Expectations and Efficient Markets 118
16. Part III. Never Reason from a Price Change
17. Chapter Ten. The Musical-Chairs Model 135
18. Chapter Eleven. What Is Monetary Policy? 155
19. Chapter Twelve. Nominal and Real Exchange Rates 173
20. Part IV. How to Think about Macroeconomics
21. Chapter Thirteen. The Path to Market Monetarism 197
22. Chapter Fourteen. I See Dead Patterns 212
23. Chapter Fifteen. Good Economists Don’t Forecast, They Infer Market Forecasts 231
24. Chapter Sixteen. The Secret History of Monetary Policy 247
25. Part V. The Great Recession
26. Chapter Seventeen. Fed Policy in 2008: A Case of Self-Induced Paralysis? 267
27. Chapter Eighteen. A Confession of Contractionary Effect 276
28. Chapter Nineteen Schadenfreude on the Titanic 285
29. Chapter Twenty Alternative Explanations of the Great Recession 307
30. Part VI What Does It All Mean?
31. Chapter Twenty-One Policy Implications of Market Monetarism 333
32. Chapter Twenty-Two Why Should You Believe in Market Monetarism? 351
33. Acknowledgments 367
34. Notes 369
35. Bibliography 385
36. Index 393