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ppearedminmthemJournalmofmPoliticalmEconomy,mAmericanmEconomicmReview,mJournal
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Themapproachmofmthismtextmformupper-
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mnomicsmusingmthemclassicalmparadigmmofmrationalmagentsminmammarketmsetting.mTo
omoftenmmonetarymeconomicsmhasmbeenmtaughtmasmamcollectionmofmfactsmaboutmexi
stingminstitutionsmformstudentsmtommemorize.mBymteachingmfrommfirstmprinciplesmins
tead,mthemauthorsmaimmtominstructmstudentsmnotmonlyminmthemmonetarympoliciesmand
minstitutionsmthatmexistmtodayminmthemUnitedmStatesmbutmalsominmwhatmpoliciesmandmin
stitutionsmmaymormshouldmexistmtomorrowmandmelsewhere.mThemtextmbuildsmonmamsi
mple,mclearmmonetarymmodelmandmappliesmthismframeworkmconsistentlymtomamwidem
varietymofmmonetarymques-
mtions.mThemauthorsmhavemaddedminmthismsecondmeditionmnewmmaterialmonmspeculat
ivemattacksmonmcurrencies,msocialmsecurity,mcurrencymboards,mcentralmbankingmalte
rna-
mtives,mthempaymentsmsystem,mandmthemLucasmmodelmofmpricemsurprises.mDiscussion
smofmmanymtopicsmhavembeenmextended,mpresentationsmofmdatamgreatlymexpanded,ma
ndmnewmexercisesmadded.
BrucemChampmismanmeconomistmatmthemFederalmReservemBankmofmCleveland.mEarli
ermhemtaughtmatmVirginiamPolytechnicmInstitute,mthemUniversitiesmofmIowamandmWe
sternmOntario,mandmFordhammUniversity.m Dr.mChamp’smresearchminterestsmfocusmo
nmmone-
mtarymeconomics,mandmhismarticlesmhavemappearedminmthemAmericanmEconomicmRevi
ew,mJournalmofmMonetarymEconomics,mCanadianmJournalmofmEconomics,mandmthemJ
ournalmofmMoney,mCredit,mandmBanking,mamongmothermleadingmacademicmpublicat
ions.
ScottmFreemanmismProfessormofmEconomicsmatmthemUniversitymofmTexas,mAustin.m
HempreviouslymtaughtmatmBostonmCollegemandmthemUniversitymofmCalifornia,mSantamB
arbara.mProfessormFreemanmspecializesminmmonetarymtheory,mandmhismarticlesmhavema
ppearedminmthemJournalmofmPoliticalmEconomy,mAmericanmEconomicmReview,mJournal
mofmMonetarymEconomics,mandmthemJournalmofmMoney,mCredit,mandmBanking,mamon
gmothermeminentmacademicmjournals.
,
