The State, the Market and the Euro

Chartalism versus Metallism in the Theory of Money

Edited by Stephanie A. Bell, Assistant Professor of Economics, University of Missouri, Kansas City, US and Edward J. Nell, Malcolm B. Smith Professor of Economics, The New School for Social Research, US

Is the theory of money that underlies most modern macroeconomics well-grounded? What determines the value of a currency, and how is the state’s power over its currency related to its ability to stabilize prices and employment? Charles Goodhart’s classic paper ‘The Two Concepts of Money: Implications for the Analysis of Optimal Currency Areas’ which first raised these questions is reprinted here, and the distinguished authors expand its line of argument and comment on its central themes. The issues discussed are of fundamental importance in contemporary monetary theory and policy.

The State, the Market and the Euro presents two sharply contrasting theories of money – Chartalist and Metallist – and the resulting equally sharply contrasting approaches to macroeconomic policy.

‘. . . This book is a short, readable, and valuable contribution toward understanding money’s origin and the role that understanding can play in monetary policy analysis and monetary regime design. It raises some important issues with respect to the design and implementation of the Euro and Euro-related institutions. . .’
——经济娱乐ord

‘. . . very rich and enlightening. . . For everyone interested in monetary history, The State, the Market and the Euro represents without any doubt a reference to know and to study.’
– Ziet Ben Hmida, Oeconomicus