Working Paper: NBER ID: w1821
Authors: Michael D. Bordo
Abstract: Explorationsin Monetary History: A Survey of the Literature Monetary economists have long been interested in economic history asa laboratory for the testing of theory. This paper surveys recent work in monetary history within the context of the modern quantity theory of money and the new classical macroeconomics. Topics surveyed include: the development of historical monetary statistics and the determinants of money supply and money demand; historical uses of Granger-Sims causality tests of the relationships between money, prices, and output; historical studies of the secular behavior of velocity; the Great Depression; financial crises; historical evidence for the long-run and short-run neutrality of money; the domestic and international aspects of monetary standards. The paper concludes with an evaluation and an agenda for future research.
Keywords: Monetary History; Quantity Theory of Money; Monetary Policy; Great Depression
JEL Codes: E4; N1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Historical monetary disturbances (N13) | Declines in real output (E39) |
| Historical monetary disturbances (N13) | Declines in prices (E30) |
| Changes in money supply (E51) | Changes in price levels (E30) |
| Changes in money supply (E51) | Changes in real output (E23) |
| Monetary regime changes (E42) | Impact on relationship between money supply and economic outcomes (E51) |