The contents of this volume comprise the proceedings of a conference held at the IC2 Institute at the University of Texas at Austin on May 23–24, 1985. The conference title was “New Approaches to Monetary Economics,” and it was organized to bring together presentations of some of the particularly innovative new research that recently has been under way in the field of monetary economics. Much of this research develops and applies recently initiated approaches to modeling financial intermediation, aggregate fluctuations, monetary aggregation, and transactions motivated monetary equilibrium. We believe that this conference included pathbreaking research and revealed some fundamental trends in the direction in which monetary economics research is beginning to move.

The conference that produced this proceedings volume is the second in a new conference series, called International Symposia in Economic Theory and Econometrics. The symposia in the series are sponsored by the IC2 Institute at the University of Texas at Austin and are cosponsored by the RGK Foundation. This second conference also was cosponsored by the Federal Reserve Bank of Dallas and by the Department of Economics and the Center for Statistical Sciences at the University of Texas at Austin. The first conference in the series was co-organized by William Barnett and Ronald Gallant, who also co-edited the proceedings volume. That volume has appeared as the volume 30, October/November 1985 edition of the Journal of Econometrics.