Banks and Finance in Modern Macroeconomics

A Historical Perspective

米菲Ingrao和克劳迪奥Sardoni University of Roma la Sapienza, Italy

The world financial crisis of 2007–2008 dramatically showed the importance of credit and financial relations for the efficient working of the economy. For a long time mainstream macroeconomics ignored these aspects and concentrated only on the real sector or just took into account the most elementary picture of the financial side of the economy. This book aims at explaining why this happened through an historical excursion of 20th century mainstream macroeconomic theory.

‘I hail the book by Ingrao and Sardoni as an important and extremely brave cultural operation, since it represents not only a significant contribution to the history of macroeconomics but also an appreciable attempt to open fruitful discussion with contemporary macroeconomists on an issue that must be seen as highly relevant by both mainstream and heterodox economists.’
– Eleonora Sanfilippo, History of Economic Ideas

‘This is a very readable book into which clearly a lot of effort and passion has gone. For students or researchers looking to gain an overview of how macroeconomic frameworks have (not) incorporated finance or banking, it will be an indispensable reference.’
– Christopher A Hartwell, Review of Radical Political Economics

‘Banks and Finance in Modern Macroeconomics is a valuable study of how macroeconomics, by losing touch with its past traditions, came to be ill-prepared for the Global Financial Crisis.’
– Robert W. Dimand, Cahiers d’économie politique

‘Financial markets are terribly important in a modern economy. Yet, economists have mostly preferred to approach money from highly simplified perspectives that shunt the complexities of finance to one side. Still, from time to time, economists have tried to grasp the nettle. Ingrao and Sardoni provide a highly readable historical account of those efforts to integrate banking and finance into macroeconomic theory, which illuminates both why the problem is a difficult one and why it is important.’
– Kevin D. Hoover, Duke University, US

‘Over a decade since the 2008 financial crisis, this new book by Bruna Ingrao and Claudio Sardoni provides an in-depth historical investigation into how economists have (or have not) dealt with the relationship between economic performance and financial instability since the late 19th century. This is a much-needed contribution to the history of monetary macroeconomics, with solid analytical foundations.’
– Mauro Boianovsky, Universidad de Brasilia, Brazil

‘By historically analysing the ways in which macroeconomic theories have conceptualized the role of banks and financial markets, this book solves the puzzle of why mainstream macroeconomics puts the financial system in the background even though it has expanded enormously in its complex interaction with the real side of the economy.’
– Mario Amendola, University of Rome, Italy