Understanding Modern Money
The Key to Full Employment and Price Stability
L. Randall Wray
L. Randall Wray, Professor of Economics, University of Missouri-Kansas City, US; Senior Scholar, Levy Economics Institute, US and Research Director, Centre for Full Employment and Price Stability, US
|1998 208 pp Hardback 978 1 84064 007 6
|2006 Paperback 978 1 84542 941 6
Hardback £77.00 on-line price £69.30
Paperback £25.00 on-line price £20.00
‘This is the best kind of book – one that coaxes you to see the world in a new light. Old assumptions and prejudices melt away and you find yourself thinking differently (and more hopefully) about vitally important but troublesome issues of economic and social policy.’
– Philip Harvey, Rutgers University of Law, US
‘ In this innovative new work, Randy Wray has convinced at least one reader that full employment and price stability are fully compatible goals in today's world....Pivoting on his fresh rereading of the history and nature of money, Wray generates insight after insight, and will change forever the way in which we think about key macroeconomic variables and relationships.’
– John Adams, Northeastern University, US
In this innovative and very practical book, Randall Wray argues that full employment and price stability are not the incompatible goals that current economic theory and policy assume. Indeed, he advances a policy that would generate true, full employment while simultaneously ensuring an even greater degree of price stability than has been achieved in the 1990s.
Full table of contents
In this innovative and very practical book, L. Randall Wray argues that full employment and price stability are not the incompatible goals that current economic theory and policy assume. Indeed, he advances a policy that would generate true, full employment while simultaneously ensuring an even greater degree of price stability than has been achieved in the 1990s.
Wray’s clearly written argument incorporates incisive historical analysis, modern monetary theory, and an examination of policy alternatives that rises above the doctrinal debates among monetarists, supply-siders and Keynesians over natural or non-inflationary rates of unemployment. Understanding Modern Money proclaims that a labor buffer stock program would guarantee full employment and increase labor productivity and economic growth, while reducing inflationary pressures. Wray's analysis shows that, contrary to popular belief, the dangers of a government budget deficit are largely imaginary. He outlines a program in which the government acts as employer of last resort, thereby providing employment and training to the otherwise unemployed, and stabilizing the wage scale which acts as a brake on inflation. This permits greater price stability without requiring conventional methods such as wage and price controls or countercyclical monetary policy.
This ground-breaking book offers important new ways of thinking for policymakers, students, and general readers interested in economics, employment policies, and monetary theory.
Contents: Preface 1. Introduction 2. Money and Taxes 3. An Introduction to a History of Money 4. Government Spending, Deficits and Money 5. Monetary Policy 6. Employment Policy and the Value of the Currency 7. The Logic of the Taxes-Drive-Money View 8. Conclusions