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Woodford and Wicksell on Interest and Prices: The Place of the Pure Credit Economy in the Theory of Monetary Policy

Published online by Cambridge University Press:  11 June 2009

David Laidler
David Laidler
Affiliation:
Professor Emeritus at the University of Western Ontario, and Scholar in Residence at the C. D. Howe Institute.
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Extract

There can be no doubt that the monetary systems of a number of advanced countries nowadays resemble Knut Wicksell's (1898) model of the “pure credit economy” much more closely than did any that actually existed in the world for which he wrote. Currency has long been losing its quantitative importance in mediating transactions among the general public in such countries, and more recently, the development of modern information technology has made it possible for them to operate the clearing and settlement systems that underpin the use of bank deposits as means of exchange with a close-to-zero stock of reserve assets.

Type
Research Article
Information
Journal of the History of Economic Thought , Volume 28 , Issue 2 , June 2006 , pp. 151 - 159
Copyright
Copyright © The History of Economics Society 2006

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References

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