Money in a theory of finance /
Gurley, John G.
Money in a theory of finance / - Washington,D.C. : Brookings Institution, c1960. - xiv, 371 p. :ill,
Includes bibliographical footnotes and index.
THE recent volume by Gurley and Shaw presents a theory of the role of financial institutions in a growing economy. A neoclassical world is assumed in which prices are flexible, employment is full, and money illusion is absent. The authors' procedure is to begin with a rudimentary economy which
contains only one financial market, that for money, and one financial institution, the government monetary system. Their second model adds a financial market for homogeneous
business bonds, issued by private firms, which are purchased by both the government banking system and the public.
The third model introduces a third financial market: that for non-monetary indirect assets which are issued by a group of nonmonetary financial intermediaries that purchase business bonds. In a final chapter the governmental monetary system is replaced by a private banking system, and the quantity of money outstanding reflects profit considerations of the private banking system, which is subject to control by a central bank.
Finance.
Money.
HG173 / .G8
332 / GUR
Money in a theory of finance / - Washington,D.C. : Brookings Institution, c1960. - xiv, 371 p. :ill,
Includes bibliographical footnotes and index.
THE recent volume by Gurley and Shaw presents a theory of the role of financial institutions in a growing economy. A neoclassical world is assumed in which prices are flexible, employment is full, and money illusion is absent. The authors' procedure is to begin with a rudimentary economy which
contains only one financial market, that for money, and one financial institution, the government monetary system. Their second model adds a financial market for homogeneous
business bonds, issued by private firms, which are purchased by both the government banking system and the public.
The third model introduces a third financial market: that for non-monetary indirect assets which are issued by a group of nonmonetary financial intermediaries that purchase business bonds. In a final chapter the governmental monetary system is replaced by a private banking system, and the quantity of money outstanding reflects profit considerations of the private banking system, which is subject to control by a central bank.
Finance.
Money.
HG173 / .G8
332 / GUR