b
, ModelingbMonetarybEconomies
Tooboftenbmonetarybeconomicsbhasbbeenbtaughtbasbabcollectionbofbfactsbaboutbinstitutionsbf
orbstudentsbtobmemorize.bBybteachingbfrombfirstbprinciplesbinstead,bthisbadvancedbunder-
bgraduate btextbookbbuildsbonbabsimple, bclearbmonetarybmodel band bappliesbthisbframeworkb
consistentlybtobabwidebvarietybofbmonetarybquestions.bStartingbwithbthebcasebinbwhichbtradeb
isbmutuallybbeneficial,bthebbookbdemonstratesbthatbmoneybmakesbpeoplebbetterboff,bandbthat
bgovernmentbmoneybcompetes bagainstbother bmeansbofbpayments, bincludingbother btypesbofb
governmentbmoney.bAfterbdevelopingbeachbofbthesebtopics,bthebbookbtacklesbthebissuebofb
moneybcompetingbagainstbotherbstoresbofbvalue,bexaminingbissuesbassociatedbwithbtrade,bfi
nance,bandbmodernbbanking.bThebbookbthenbmovesbfrombsimplebeconomiesbtobmodernbeco
nomies,baddressingbthebrolebbanksbplaybinbmakingbmorebtradesbpossible,bconcludingbwithbthe
binformationbproblemsbplaguingbmodernbbanking, bwhichbresultbinbfinancialbcrises.
BrucebChampbwasbabSeniorbResearchbEconomistbatbthebFederalbReservebBankbofbCleveland,
band bpassed bawaybinb2013.bEarlierbhebtaughtbatbVirginia bPolytechnic bInstitute,bthebUniversi
-
btiesbofbIowabandbWesternbOntario,bandbFordhambUniversity. bDr.bChamp’sbresearchbinterest
sbfocusedbonbmonetarybeconomicsbandbhisbarticlesbhavebappearedbinbthebAmericanbEconomi
cbReview;bJournalbofbMonetarybEconomics;bCanadianbJournalbofbEconomics;bandbJournalb
ofbMoney,bCredit,bandbBanking,bamongbotherbleadingbacademicbpublications.bHebcoauthor
edbthebfirstbandbsecondbeditionsbofbModelingbMonetarybEconomiesbwithbtheblatebScottbFreem
an.
ScottbFreemanbwasbabProfessorbofbEconomicsbatbthebUniversitybofbTexas,bAustin.bHebtaughtb
earlierbatbBostonbCollegebandbthebUniversitybofbCalifornia,bSantabBarbara.bProfessorbFree-
bmanbdiedbinb2004bafterbstrugglingbwithbAmyotrophic bLateral bSclerosisbfor bseveralbyears. b
ProfessorbFreemanbspecializedbinbmonetarybtheory,bandbhisbarticlesbappearedbinbthebJournalb
ofbPoliticalbEconomy;bAmericanbEconomicbReview;bJournalbofbMonetarybEconomics;band
bJournalbofbMoney,bCredit,bandbBanking,bamongbother beminentbacademicbjournals.
JoebHaslagbisbProfessorbandbKennethbLaybChairbinbEconomicsbatbthebUniversitybofbMissouri.
bProfessorbHaslagbreceived bhisbPhDbinbEconomicsbfrombSouthernbMethodist bUniversitybin
b1987.bProfessorbHaslagbspentb12byearsbinbthebResearchbDepartment batbthebFederalbReserv
ebBankbofbDallas,bteachingbgraduatebandbundergraduatebcoursesbatbSouthernbMethodistbUn
i-
bversity. bHebvisitedbthebEconomics bDepartmentbatbMichiganbStatebUniversitybinb2000bandb
thebDepartmentbofbMonetarybEconomicsbatbErasmusbUniversitybinb1994.bHebhasbpublished
bhisbresearchbinbsuchbprestigiousbacademic bjournalsbasbthe bJournalbofbMonetarybEconomics;
bJournalbofbMoney,bCredit,bandbBanking;bThebReviewbofbEconomicsbandbStatistics;bInterna
-btionalbEconomicbReview;bandbReviewbofbEconomicbDynamics,bamongbotherbleadingbaca-
bdemicbjournals.
,
, Modeling Monetary Economies
b b
Fourth Edition
b
BRUCE b CHAMP b SCOT
T b FREEMAN b JOSEPH b H
ASLAG
UniversitybofbMissouri-Columbia
, ModelingbMonetarybEconomies
Tooboftenbmonetarybeconomicsbhasbbeenbtaughtbasbabcollectionbofbfactsbaboutbinstitutionsbf
orbstudentsbtobmemorize.bBybteachingbfrombfirstbprinciplesbinstead,bthisbadvancedbunder-
bgraduate btextbookbbuildsbonbabsimple, bclearbmonetarybmodel band bappliesbthisbframeworkb
consistentlybtobabwidebvarietybofbmonetarybquestions.bStartingbwithbthebcasebinbwhichbtradeb
isbmutuallybbeneficial,bthebbookbdemonstratesbthatbmoneybmakesbpeoplebbetterboff,bandbthat
bgovernmentbmoneybcompetes bagainstbother bmeansbofbpayments, bincludingbother btypesbofb
governmentbmoney.bAfterbdevelopingbeachbofbthesebtopics,bthebbookbtacklesbthebissuebofb
moneybcompetingbagainstbotherbstoresbofbvalue,bexaminingbissuesbassociatedbwithbtrade,bfi
nance,bandbmodernbbanking.bThebbookbthenbmovesbfrombsimplebeconomiesbtobmodernbeco
nomies,baddressingbthebrolebbanksbplaybinbmakingbmorebtradesbpossible,bconcludingbwithbthe
binformationbproblemsbplaguingbmodernbbanking, bwhichbresultbinbfinancialbcrises.
BrucebChampbwasbabSeniorbResearchbEconomistbatbthebFederalbReservebBankbofbCleveland,
band bpassed bawaybinb2013.bEarlierbhebtaughtbatbVirginia bPolytechnic bInstitute,bthebUniversi
-
btiesbofbIowabandbWesternbOntario,bandbFordhambUniversity. bDr.bChamp’sbresearchbinterest
sbfocusedbonbmonetarybeconomicsbandbhisbarticlesbhavebappearedbinbthebAmericanbEconomi
cbReview;bJournalbofbMonetarybEconomics;bCanadianbJournalbofbEconomics;bandbJournalb
ofbMoney,bCredit,bandbBanking,bamongbotherbleadingbacademicbpublications.bHebcoauthor
edbthebfirstbandbsecondbeditionsbofbModelingbMonetarybEconomiesbwithbtheblatebScottbFreem
an.
ScottbFreemanbwasbabProfessorbofbEconomicsbatbthebUniversitybofbTexas,bAustin.bHebtaughtb
earlierbatbBostonbCollegebandbthebUniversitybofbCalifornia,bSantabBarbara.bProfessorbFree-
bmanbdiedbinb2004bafterbstrugglingbwithbAmyotrophic bLateral bSclerosisbfor bseveralbyears. b
ProfessorbFreemanbspecializedbinbmonetarybtheory,bandbhisbarticlesbappearedbinbthebJournalb
ofbPoliticalbEconomy;bAmericanbEconomicbReview;bJournalbofbMonetarybEconomics;band
bJournalbofbMoney,bCredit,bandbBanking,bamongbother beminentbacademicbjournals.
JoebHaslagbisbProfessorbandbKennethbLaybChairbinbEconomicsbatbthebUniversitybofbMissouri.
bProfessorbHaslagbreceived bhisbPhDbinbEconomicsbfrombSouthernbMethodist bUniversitybin
b1987.bProfessorbHaslagbspentb12byearsbinbthebResearchbDepartment batbthebFederalbReserv
ebBankbofbDallas,bteachingbgraduatebandbundergraduatebcoursesbatbSouthernbMethodistbUn
i-
bversity. bHebvisitedbthebEconomics bDepartmentbatbMichiganbStatebUniversitybinb2000bandb
thebDepartmentbofbMonetarybEconomicsbatbErasmusbUniversitybinb1994.bHebhasbpublished
bhisbresearchbinbsuchbprestigiousbacademic bjournalsbasbthe bJournalbofbMonetarybEconomics;
bJournalbofbMoney,bCredit,bandbBanking;bThebReviewbofbEconomicsbandbStatistics;bInterna
-btionalbEconomicbReview;bandbReviewbofbEconomicbDynamics,bamongbotherbleadingbaca-
bdemicbjournals.
,
, Modeling Monetary Economies
b b
Fourth Edition
b
BRUCE b CHAMP b SCOT
T b FREEMAN b JOSEPH b H
ASLAG
UniversitybofbMissouri-Columbia
