The 4th Price of Money and Theories of Inflation

The Price Level and the Inflation Rate

March 2021 - June 2022

In this Webinar Series we will invite scholars to present and discuss different perspectives and theories of the price level inflation.

Webinar Series

Description

The fourth price of money is the price level — the price of money in terms of commodities or goods. We call it the fourth price because Perry Mehrling's Money View tends to emphasize three other prices of money: par, interest rates, and exchange rates.

Getting a handle on inflation — an increase in the price level — has been a challenge for economists across different historical episodes. Today, inflation is again at the forefront of policy debate. While some advanced economies have been struggling to bring inflation back, some emerging economies are still struggling to tame it.

In this Webinar Series we will invite scholars to present different perspectives and theories of inflation. The format consists of a 25-30 minutes presentation of one speaker followed by questions from the audience and discussion.

UPCOMING EVENTS

Online

21 Oct 2021

Webinar

Minsky — The Financial-Instability Hypothesis

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? The money view emphasizes money, banking, finance, and financial stability (or instability). How is price-level stability connected to financial stability? Can these two forms of stability coexist? To what extent is it possible to have one have one without the other? This week, we're reading and discussing a 1982 article by Minsky entitled "The Financial-Instability Hypothesis: Capitalist Processes and the Behavior of the Economy" The Financial-Instability Hypothesis: Capitalist Processes and the Behavior of the Economy

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PAST EVENTS

Online

27 Mar 2021

Webinar

Two routes back to the old Phillips curve

The Phillips curve posits a trade-off between inflation and unemployment and has long served as the workhorse model of inflation for most economists and Central Banks. Although the conceptual foundations of this relationship have been a subject of debate, the relationship seemed well-supported by the data for many decades. However, since the 1960s, the slope of the curve (a measure of the responsiveness of inflation to a decline in labor market slack) has diminished significantly. Despite the flattening of the Phillips curve, Blanchard has recently argued that it is still "alive and well." According to Summa and Braga (2020), there are "two routes" to this old Phillips curve: the mainstream route and the conflict-augmented alternative. In this Webinar, we will have a conversation with the authors about these two alternatives:i) the amended mainstream, which considers demand-pull inflation and full incorporation of inflation expectations into money wages and;ii) an alternative non-neoclassical conflict-augmented Phillips curve that assumes no labor scarcity, cost-push inflation, and expectations that are not always fully passed on to nominal wages. The full paper can be found here: https://serialsjournals.com/abstract/42980_4-summa.pdf About the authors: Ricardo Summa is professor of Economics at the Federal University of Rio de Janeiro, Research Fellow at the National Council for scientific and Technological Development (CNPq) and Associate Editor of the Review of Keynesian Economics. Julia Braga is Associate Professor at the Faculty of Economics at Federal Fluminense University (UFF)

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Online

13 Mar 2021

Webinar

Reading Group Recurrent Meeting

Welcome to week one of the Price Level (Fourth Price of Money) discussion and webinar group. We have a weekly standing video meeting time at 9 am Eastern Time (America/New York) every Saturday. For this coming Saturday, March 13th, we will be reading and discussing "Two routes back to the old Phillips curve: the amended mainstream model and the conflict augmented alternative" by Ricardo Summa and Julia Braga https://serialsjournals.com/abstract/42980_4-summa.pdf The following week, we are hoping to have one of the authors with us for a webinar to talk about the paper and answer questions. We also have a Discord server for ongoing discussion: https://discord.gg/yD8psxqe3x

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Online

20 Mar 2021

Webinar

Reading Group Recurring Meeting

Welcome to week two of the Price Level (Fourth Price of Money) discussion and webinar group. Our weekly standing video meeting time is 9 am Eastern Time (America/New York) every Saturday. For Saturday, March 20th, we will be continuing our discussion of "Two routes back to the old Phillips curve: the amended mainstream model and the conflict augmented alternative" by Ricardo Summa and Julia Braga https://serialsjournals.com/abstract/42980_4-summa.pdf On March 27th at 10 am Eastern time, the authors will join us for a webinar. See our Discord server for ongoing discussion: https://discord.gg/yD8psxqe3x

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Online

17 Apr 2021

Webinar

The Great Demographic Reversal with Charles Goodhart and Manoj Pradhan

Are we heading into a future with higher inflation, higher interest rates and less inequality? That is what Charles Goodhart and Manoj Pradhan propose in their book 'The Great Demographic Reversal: Ageing Societies, Waning Inequality, and an Inflation Revival'. Goodhart and Pradhan propose that the underlying forces of demography and globalisation will shortly reverse multi-decade global trends of lower inflation, lower interest rates, and more inequality. “Whatever the future holds”, the authors argue, “it will be nothing like the past”. Deflationary headwinds over the last three decades have been primarily due to an enormous surge in the world’s available labour supply, owing to very favourable demographic trends and the entry of China and Eastern Europe into the world’s trading system. This book demonstrates how these demographic trends are on the point of reversing sharply, coinciding with a retreat from globalisation. The result? Ageing can be expected to raise inflation and interest rates, bringing a slew of problems for an over-indebted world economy, but is also anticipated to increase the share of labour, so that inequality falls. This webinar is a conversation with the authors about their book, their claims, and their theory of the price level and inflation. About the authors: Charles Goodhart is Emeritus Professor of Banking and Finance at the London School of Economics. Charles previously was a monetary economist at the Bank of England, becoming a Chief Adviser in 1980. Manoj Pradhan is the founder of Talking Heads Macro, an independent macroeconomic research firm. Manoj was previously Managing Director at Morgan Stanley and led the Global Economics team there.

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Online

10 Apr 2021

Webinar

Reading Group Recurring Meeting

This week, we're discussing chapter 5 of "The Great Demographic Reversal" by Charles Goodhart and Manoj Pradhan. The title of the chapter is: "The Resurgence of Inflation." Our weekly standing video meeting time is 9 am Eastern Time (America/New York) every Saturday. On April 17th at 12 am Eastern time, the authors will join us for a webinar. See our Discord server for ongoing discussion: https://discord.gg/yD8psxqe3x

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Online

24 Apr 2021

Webinar

Reading Group Recurring Meeting

The price level is the average price of goods in terms of money. As Perry Mehrling's money view emphasizes, the price level also describes the price of money in terms of goods. But what forces lie behind behind the determination of the price level? This week, we will discuss a recent paper by Lance Taylor and Nelson H. Barbosa-Filho entitled "Inflation? It’s Import Prices and the Labor Share" The paper provides a brief summary of US inflation history, along with a survey of theories used to explain it. The authors conclude that changes to the labor share of output, along with input prices, are main drivers of inflation. If labor share and import prices are indeed the primary drivers of inflation, then why is this true? Under what conditions would it cease to be true? Our weekly standing video meeting time is 9 am Eastern Time (America/New York) every Saturday. See our Discord server for ongoing discussion: https://discord.gg/YKHZJR8sKc

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Online

1 May 2021

Webinar

Inflation? It’s Import Prices and the Labor Share!

In their recent Working Paper Inflation? It’s Import Prices and the Labor Share! Lance Taylor and Nelson Barbosa argue that inflation should be analyzed as a dynamical macroeconomic process instead of the micro-oriented approach used by monetarist analysis. After a critical presentation of the Phillips Curve and inflation targeting history, the authors build on contemporary structuralist theory and on an empirical exercise using a VEC model to discuss the challenges for the Biden administration. According to the authors, conflicting claims to income are the underlying source of inflationary pressure. Import costs and policy repercussions complicate the picture. Still, the empirical results suggest that money wages would have to grow one percentage point per year faster than prices plus productivity for several years if the Fed is to meet a three percent inflation target. In this Webinar, we will have a conversation with the authors about the theory, their results, and the policy options and challenges. Link for the WP: https://www.ineteconomics.org/uploads/papers/WP_145-Taylor-and-Barbosa-Filho-Inflation.pdf About the authors: Lance Taylor received a Ph.D. in Economics from Harvard University in 1968. He has been a professor in the economics departments of Harvard and the Massachusetts Institute of Technology, the New School for Social Research, among other research institutions. He has published widely in the areas of macroeconomics, development economics, and economic theory. Nelson Barbosa holds a Ph.D. in Economics from the New School for Social Research and is currently a Professor at FGV and the University of Brasilia. He has also worked as an economic analyst at the Brazilian Central Bank and, from 2006 through 2013, he was part of the senior economic staff at the Brazilian Ministry of Finance, first as Secretary of Economic Monitoring (2007-08), and later as Secretary of Economic Policy (2009-10) and Deputy Finance Minister (2011-13).

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Online

8 May 2021

Webinar

Reading Group Recurring Meeting

The price level is the average price of goods in terms of money. As Perry Mehrling's money view emphasizes, the price level also implies a price of money in terms of goods. But what determines the price level? Why is the price level important? And how does the price level fit into the rest of the money view? This week, we will discuss a 2016 article by Richard Vague entitled "Rapid Money Supply Growth Does Not Cause Inflation." https://www.ineteconomics.org/perspectives/blog/rapid-money-supply-growth-does-not-cause-inflation He also says, "Neither do rapid growth in government debt, declining interest rates, or rapid increases in a central bank’s balance sheet." Is Vague right? If none of those things cause inflation, then what does cause inflation. Or, more importantly what kinds of forces prevent inflation and keep the price level stable? Our weekly standing video meeting time is 9 am Eastern Time (America/New York) every Saturday. See our Discord server for ongoing discussion: https://discord.gg/YKHZJR8sKc

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Online

15 May 2021

Webinar

Rapid Money Supply Growth Does Not Cause Inflation

Monetarists say that inflation is caused by a growth in the money supply—or money stock—by which they mean the amount of money "out there." For his 2016 article, Rapid Money Supply Growth Does Not Cause Inflation, Richard Vague compiled some data that suggest otherwise. He further challenges the idea that inflation is caused either by rapid growth in government debt, by declining interest rates, or by rapid expansion of the central bank's balance sheet. This prompts many questions: What does cause inflation? What has been keeping the price level stable? What can governments and central banks do to cause inflation or prevent deflation? To what extent is it all a matter of degree? If money supply growth had been less rapid than it "needed" to be, would we have seen deflation? Or is money supply simply the wrong variable to look at? How can we know? When central banks are targeting inflation, what can empirical data teach us about the nature of inflation? Does the absence of excess inflation imply that central banks understand how inflation works, or how to prevent it? In this webinar, Richard Vague will be joining us to discuss these, and other questions about inflation and the price level. About the author: Richard Vague is Acting Secretary of Banking and Securities for the Commonwealth of Pennsylvania and serves on the Governing Board of INET. He is the author of A Brief History of Doom, a chronicle of major world financial crises, The Next Economic Disaster, a book with a new approach for predicting and preventing financial crises, and An Illustrated Business History of the United States, forthcoming in May 2021.

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Online

22 May 2021

Webinar

Kindleberger — A Structural View of the German Inflation

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week, we will discuss a 1984 essay by Charles Kindleberger entitled "A Structural View of the German Inflation." The essay appears as a chapter in the book "Die Erfahrung der Inflation im internationalen Zusammenhang und Vergleich / The Experience of Inflation International and Comparative Studies." Kindleberger takes a pluralistic approach to explaining the German inflation that occurred from 1914 to 1923—including the famous Weimar hyperinflation of the early 1920s. What can we learn from how Kindleberger thinks about this inflationary episode? To what extent can we apply his approach to our understanding of inflation—or the price level—in general? Our weekly standing video meeting time is 9 am Eastern Time (America/New York) every Saturday. See our Discord server for ongoing discussion and a link to the reading: https://discord.gg/YKHZJR8sKc

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Online

29 May 2021

Webinar

The German Inflation 1914-1923

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? To continue our exploration of the Post-World War I German inflation that we started last week with the Kindleberger reading, we are reading Chapters 3-6 of Carl-Ludwig Holtfrerich's 1986 book The German Inflation 1913-1924 Questions that were raised in our previous discussion: What was the state of Germany's banking system after World War I? What did Germany need to do to transition from a war economy to a civilian economy? How could Germany have achieved the best outcome possible post-WWI? Which happened first: price rises or money supply increases? Why does it matter? Why did the Rentenmark succeed in ending the hyperinflation? Our weekly standing Zoom meeting time is 9 am Eastern Time (America/New York) every Saturday. See our Discord server for ongoing discussion: https://discord.gg/HYbdBezA

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Online

5 Jun 2021

Webinar

Carl-Ludwig Holtfrerich on The German Inflation 1914-1923

As with the Great Depression, there are many theories and stories—some of them contradictory—about what caused the German inflation. Did it depend on a combination of multiple factors? Was it overdetermined? What was the role of Germany's financial policy? At what point did hyperinflation become inevitable? What insights can we draw from the German experience during and after the First World War to help us better understand inflation and the price level in general? In his 1986 book The German Inflation 1914–1923, German economist Carl-Ludwig Holtfrerich traces the roots of the inflation to Germany's fiscal and monetary policy during the First World War. This week, Holtfrerich joins us to discuss the book and his perspective on the German inflation (and hyperinflation). Here are some questions we might explore: What was the state of Germany's banking system after World War I? What did Germany need to do to transition from a war economy to a civilian economy? How could Germany have achieved the best outcome possible post-WWI? Which happened first: price rises or money supply increases? Why does it matter? Why did the Rentenmark succeed in ending the hyperinflation?

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Online

12 Jun 2021

Webinar

Why do people hate inflation?

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week, we're discussing a recent Noah Smith Substack post entited Why do people hate inflation? If money were truly neutral, then there should be no reason why anyone would care one way or another. We tend to colloquially think of “inflation” as meaning “an increase in the real cost of living”, but to economists it really means something more like “fiddling with the unit of account”. Smith argues that nominal upward wage rigidity is the problem. When average consumer prices increase, wages tend not to move very much. This contradicts the cost-push wage-driven version of inflation we've discussed previously. We can ask the question of what causes nominal price rigidities to occur in the first place. Would we have nominal rigidities in a world where people didn't expect the price level to be reasonably stable? Would we see wage contracts with inflation adjustments built in? Another useful Noah Smith Substack post is Your local price changes aren't inflation. Our weekly standing Zoom meeting time is 9 am Eastern Time (America/New York) every Saturday. See our Discord server for ongoing discussion: https://discord.gg/bUUpKSws

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Online

15 Jul 2021

Webinar

John Hicks Discussion — What is Bad About Inflation?

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week, we're discussing the final chapter of John Hicks' 1989 book A Market Theory of Money: Chapter 15 — What is Bad about Inflation? Hicks pushes back against some of the conventional views of inflation by pointing out that they don't explain why steady, expected, inflation is bad. "To impose a condition of non-inflation, upon an economy which has become adjusted to rising prices, would surely, from this point of view, be quite as much of an upset." Instead, he argues that inflation, in and of itself, is a symptom of a "weakening" economy. "[P]erhaps what is bad about inflation is principally not its effects—the losses of 'convenience and security' to which older economists gave so much attention—but the weakening of the economy, which is the cause of the evil. If that is cured, inflation, with only a little help from monetary policy, will cure itself." How do we feel about this explanation? Is it just begging the question? The chapter is a short five pages. Let's discuss. Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday. See our Discord server for ongoing discussion: https://discord.gg/3Z6hhcdN

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Online

22 Jul 2021

Webinar

Jens Nordvig Discussion — The big myth about money and inflation

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week we're discussing a blog post by Jens Nordvig entitled "The big myth about money and inflation." https://moneyinsideout.exantedata.com/p/the-big-myth-about-money-and-inflation Nordvig argues that despite the common wisdom, there is "no simple link between money and inflation." Is this true? Does it depend on how we define "money"? Does our understanding of money and inflation become more confused when we use the terms "money," "money stock," and "money supply" to mean the same thing? Can we draw a simple link between money and inflation if we find another way to define "money" besides "money stock"? Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday. See our Discord server for ongoing discussion: https://discord.gg/3Z6hhcdN

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Online

29 Jul 2021

Webinar

Discussion of July 16th House of Lords Report on QE

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week we're discussing recent (July 16th) report by the House of Lords Economic Affairs Committee entitled "Quantitative easing: a dangerous addiction?" https://publications.parliament.uk/pa/ld5802/ldselect/ldeconaf/42/4203.htm Since the 2008 crisis, quantitative easing (QE)—bond purchases by the central bank—has become normal and the scale of the activity has only increased. Why is this happening? Is it a bad thing? A good thing? What would have happened without the QE. Would we have been able to prevent deflation? Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday. See our Discord server for ongoing discussion: https://discord.gg/5npJQevQ

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Online

5 Aug 2021

Webinar

Discussion of Monetary Architecture with Steffen Murau

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week, we're reading Steffen Murau's 2020 paper, "A Macro-Financial Model of the Eurozone Architecture Embedded in the Global Offshore US-Dollar System" and using it as a jumping off point for discussion. What makes a monetary architecture "functional and complete"? http://www.bu.edu/gdp/files/2020/07/Murau-Eurozone-architecture.pdf What are the ultimate constraints on what Murau calls "elasticity space?" More generally, what exogenous constraints does a monetary architecture face? To what extent are those constraints natural, political, or both? How can the price level fit into our understanding of monetary architecture, shadow banking, and financial globalization? Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday. See our Discord server for ongoing discussion: https://discord.gg/5npJQevQ

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Online

12 Aug 2021

Webinar

The hyperinflation in Zimbabwe | Ushehwedu Kufakurinani

In this session we will discuss the Zimbabwean experience with hyperinflation which began in the 2000s. Introducing us to the topic are Ushehwedu Kufakurinani's working papers, which you can find here. From hyperinflation to liquidity crunch: Money Doctors and the Zimbabwean Economic Experience, 2008 to 2015AbstractThis paper examines Zimbabwe’s journey from hyperinflation to liquidity crunch through. It gives a chronological description of the hyperinflation and the turn into the liquidity crunch identifying the key persons, moments and policies. The paper also analyses the monetary problems of Zimbabwe during the hyperinflation as well as the liquidity crunch using the OCA model. We make the examination of Zimbabwe’s economic experience through the lens of monetary authorities, dubbed ‘money doctors’. “From Zero to Hero”: Economic crisis, the Zimbabwean State and Currency Redenomination, 2006-2009AbstractThis chapter evaluates the Zimbabwean state’s responses to the economic crisis through currency redenomination exercises by the RBZ, under the stewardship of Gideon Gono intended at arresting hyper-inflation. The initial redenomination, dubbed Operation Sunrise, was in 2006. Two other currency reforms took place before the de facto dollarisation in 2009. In a space of under 3 years, between 2006 and 2009, the RBZ had slashed a total of 25 zeros as part of a redenomination exercise to contain inflation. Inflation had become the arch-enemy of the Zimbabwean state and society with basic commodities disappearing from the shelves and appearing on the black market. The huge figures on the notes caused technical nightmares as it became difficult to compute and/or undertake transactions. In this chapter, we interrogate the rationale behind the currency redenomination exercises. We demonstrate how the state manipulated monetary policy for its own survival and some of the limitations of such interventions. The rationale behind RBZ’s interventions, we argue, was motivated more political rather than economic factors, representing successive attempts to save an embattled government. The efforts, too, were part of what Jeremy Jones dubbed “kukiya kiya economy”, where a whole nation-state resorted to ad hoc measures for survival.

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Online

19 Aug 2021

Webinar

Zimbabwean hyperinflation follow-up discussion

Today we'll recap our session from the previous week and deepen our discussion of the Zimbabwean hyperinflation.

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Online

2 Sep 2021

Webinar

James Tobin Nobel Lecture

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week, we are reading and discussing James Tobin's 1981 Nobel lecture: "Money and Finance in the Macro-Economic Process". The lecture explores how fiscal policy and monetary policy might connect up to general equilibrium models of the macro-economy represented as systems of simultaneous equations. https://www.nobelprize.org/uploads/2018/06/tobin-lecture.pdf What does it mean for markets to be perfectly efficient? Is there a role for money in the economy if there are no market failures? Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday. See our Discord server for ongoing discussion: https://discord.gg/NJMyew58

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Online

9 Sep 2021

Webinar

The Hahn Problem

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? The price level — the average price of goods in terms of money — is the reciprocal of the price of money in terms of goods. This week, we're exploring the Hahn problem, which poses the question of how money can have positive value in a general equilibrium model. We are reading Frank Hahn's 1965 Essay "On Some Problems Of Proving the Existence of an Equilibrium in a Monetary Economy" in which he poses the problem. From Perry Mehrling's lecture notes: Most economists, following Frank Hahn (e.g. Money and Inflation 1982), see the absence of money as a weakness of the general equilibrium theory. The theory doesn’t have anything to say about the monetary phenomena and institutions that are apparently so important in the real world. The response of economists has been to try to develop models in which markets are less perfect, so there is a place for money. Three approaches can be distinguished: 1) Overlapping generations, money as a store of value (Wallace “The Overlapping Generations Model of Fiat Money”1980) 2) Search and matching models (Kiyotaki and Wright “On Money as a Medium of Exchange” 1989) 3) Walrasian GE with transactions costs (Starr “Monetary General Equilibrium with Transactions Costs” 2005) All of these take as their problem the exchange of commodities in a world without any financial assets except money (i.e. an extension of our first model), and they show that money plays a role. The problem is that, quite generally, these results do not generalize to a world with financial assets because money, paying no interest, is a dominated asset. Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday. See our Discord server for ongoing discussion: https://discord.gg/NJMyew58

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Online

16 Sep 2021

Webinar

Hicks — "A Suggestion for Simplifying the Theory of Money"

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? This week, we are reading John Hicks' famous 1935 essay "A Suggestion for Simplifying the Theory of Money" in which he asks why people—in choosing to forgo consumption in the present—would ever choose to hold "barren money" instead of interest-bearing assets that provide a positive return. This question, of course, is related to liquidity. But where does the price level fit in? From Perry Mehrling's "The Monetary Education of John Hicks" (2017): Says Hicks himself in an essay written for a 1982 collection of his monetary essays: “I have, to this day, a much higher opinion of ‘Simplifying’ than of any other of these early papers; I would still stand by what I said in it, so far as it goes.” What Hicks rejected was not what he himself said, but rather what others subsequently made of what he said. He continues: “So in the end I had to go back to ‘Simplifying’, and to insist that its message was a Declaration of Independence, not only from the ‘free market’ school from which I was expressly liberating myself, but also from what came to pass as Keynesian economics” (1982, 8-9). Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday. See our Discord server for ongoing discussion: https://discord.gg/NPuN9xPjBF

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Online

23 Sep 2021

Webinar

Leijonhufvud — "Keynes and the Keynesians: A Suggested Interpretation"

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? For this week, we're reading a 1967 essay by Axel Leijonhufvud entitled "Keynes and the Keynesians: A Suggested Interpretation," in which he suggests that the key feature of a Keynesian world is that quantities adjust before prices. https://www.jstor.org/stable/1821641https://archive.org/details/informationcoord0000leij/

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Online

30 Sep 2021

Webinar

The Boskin Commission and the Consumer Price Index

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? When we measure the price level, what is it, exactly that we're trying to measure? What outcomes will an accurate measurement help us achieve? Is our goal to be able to better implement policies that automatically adjust to changes in the price level? Is it to stabilize the price level better? Both? Is it more useful for a price index to be accurate over the short run or the long run? What can these questions help us understand about the nature of money? In mid-90s, the Boskin commission set out to study how well the consumer price index (CPI) reflected changes in the cost of living. We're reading a "The Boskin Commission Report: A Retrospective One Decade Later" by Robert J. Gordon. https://www.researchgate.net/publication/24051588_The_Boskin_Commission_Report_A_Retrospective_One_Decade_Later

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Online

7 Oct 2021

Webinar

Hicks — The Valuation of the Social Income

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? The idea of social income or overall quantity of national product has strong theoretical ties to the price level. Both require a model for how the "real value" of goods and services relates to their price in money. For this week, we're reading John Hicks's 1940 article, The Valuation of the Social Income. https://www.jstor.org/stable/2548691

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14 Oct 2021

Webinar

Hicks — The Valuation of the Social Income (2nd Attempt)

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? The October 7th discussion didn't happen. So for this week, we're actually discussing John Hicks's 1940 article, The Valuation of the Social Income. https://www.jstor.org/stable/2548691 The idea of social income, or overall quantity of goods and services produced for the benefit of people, has strong theoretical ties to the price level. Both require a model for how the "real value" of goods and services maps onto their price in money.

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Working groups
  • Financial Stability
Project Organizers
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Nathalie Marins

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Alex Howlett

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Mateusz Urban

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Jay Pocklington

For questions, the Project Organizers.

YSI Webinar

Hicks — The Valuation of the Social Income (2nd Attempt)

October 14 2021, 15:30

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

The October 7th discussion didn't happen. So for this week, we're actually discussing John Hicks's 1940 article, The Valuation of the Social Income.

https://www.jstor.org/stable/2548691

The idea of social income, or overall quantity of goods and services produced for the benefit of people, has strong theoretical ties to the price level. Both require a model for how the "real value" of goods and services maps onto their price in money.

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Start: October 14 2021, 15:30*

Duration: 60 minutes

*Time is displayed in your local time zone (Africa/Abidjan).

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Topic: Hicks — The Valuation of the Social Income (2nd Attempt)

Time: October 14 2021, 15:30 (Timezone: Africa/Abidjan)

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