In some quarters an author who attempted to defend monetarism would be viewed in the same light a... more In some quarters an author who attempted to defend monetarism would be viewed in the same light as someone who supported paedophilia or incest! Monetarism represents the forces of darkness, ignorance and destruction which, it is alleged, inflicted untold damage on the British economy (see, for example, Gould, Mills and Stewart, 1981; and Kaldor, 1982). How could any intelligent person defend the indefensible?
International Finance Section, Dept. of Economics, Princeton University eBooks, 1978
... International money and the future of the SDR. Post a Comment. CONTRIBUTORS: Author: Chrystal... more ... International money and the future of the SDR. Post a Comment. CONTRIBUTORS: Author: Chrystal, K. Alec (b. 1946, d. ----. PUBLISHER: International Finance Section, Dept. of Economics, Princeton University (Princeton, NJ). SERIES TITLE: YEAR: 1978. PUB TYPE: Book. ...
Since 1973 (1972 in the case of the UK) the exchange rates of the major industrial countries have... more Since 1973 (1972 in the case of the UK) the exchange rates of the major industrial countries have been floating against one another. This situation is in sharp contrast to the post-war Bretton Woods era during which the major currencies remained pegged for over two decades. During the fixed-rate regime it was natural to neglect the role of exchange rates in the process of macroeconomic adjustment. However, since the advent of floating, it has been necessary to consider the impact of exchange rates as a matter of urgency. Many advocates of floating predicted that a floating-rate regime would show some instability early on but would eventually settle down. This has not been the experience. Exchange rates have continued to be volatile on a short-term basis and have also displayed long cycles which are hard to explain.
The international monetary environment of the early 1980s is very different from that of the earl... more The international monetary environment of the early 1980s is very different from that of the early 1960s or indeed the early 1970s. Despite the intentions of central bankers and finance ministers, in those distant days of the 1967 Rio de Janeiro meetings, to plan for the rational evolution of an official sector-dominated system, expediency appears to have dictated a seemingly haphazard development. Despite the occurrence of a period of severe economic difficulties in many countries — the UK is a good but extreme example where there has been little or no growth in a decade, inflation remains in or close to double figures and unemployment is at a forty-year high — there is no consensus on the proper shape of an international monetary system that would support a return to more prosperous times. Will any system do?
ABSTRACT In the fifteen years leading up to the financial crisis in 2008, there emerged a great d... more ABSTRACT In the fifteen years leading up to the financial crisis in 2008, there emerged a great deal of agreement on the optimal design of monetary policy. This policy 'consensus' was accompanied also by a widely-shared view of how macroeconomies worked as the 'Keynesian' versus 'monetarist' debates slipped into the past. This paper charts the emergence of this consensus and then looks at the way in which the apparently settled ideas of monetary policy have been disrupted by recent events. In particular, it looks at the way in which the crisis has forced a revision of both the targets and instruments of monetary policy.
Preface: BA Section F T.M.Rybczynski The History of Section F D.A.Reisman Notes on the Contributo... more Preface: BA Section F T.M.Rybczynski The History of Section F D.A.Reisman Notes on the Contributors Introduction: Public Choice Analysis of Economic Policy K.A.Chrystal Public Choice and Public Policy R.Pennant-Rea Budget Deficits and the Size of Government in the UK and US: A Public Choice Perspective on the Thatcher and Reagan Years C.Rowley Public Choice: Outrageous Theory and Enraging Tests J.Cullis & P.Jones Politics and Macroeconomic Policy S.Price Public Policy and Public Choice P.Jackson & D.Garrett Some Elements of a European Federal Union: a Public Choice Approach F.Schneider Housing Policy and Public Choice M.Ricketts Science Policy and Technology Policy in a Competitive Economy S.Metcalfe Index
The views expressed herein are those of the author(s) and do not necessarily reflect the views of... more The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
At the conference in Oxford, Mississippi, it was tempting to locate the theme of the conference i... more At the conference in Oxford, Mississippi, it was tempting to locate the theme of the conference in the work of Oxford’s greatest son, and, indeed, one of the greatest literary figures of the twentieth century. William Faulkner. It is clear that Faulkner was a student of the economies of inflation … Why else would he have written a book on ‘Soldiers’ Pay’? It could also be that he anticipated the demise of monetarism in ‘As I Lay Dying’, though this more likely to be an allusion to the Keynesian medium term (since we know what happens to Keynesians in the long run!). No doubt he had Divisia in mind as the ‘Intruder in the Dust’. As far as this chapter is concerned, we shall anticipate the comments of our discussants by suggesting the potential parallel between this and ‘The Sound and the Fury’. This is a story told through the eyes of several different characters, one of whom is a congenital idiot. We shall leave it to others to identify which of us is Benji. Our learned discussants would, no doubt, wish to complete the line in William Shakespeare’s ‘Macbeth’, from which Faulkner drew his title: … ‘it is a tale told by an idiot, full of sound and fury, signifying nothing’.
International Journal of Finance & Economics, 2005
This paper reports estimates of an econometric model of the determinants of OFCs' broad money hol... more This paper reports estimates of an econometric model of the determinants of OFCs' broad money holding and M4 lending to OFCs. This is of interest both as providing information about a component of UK money and credit aggregates and because it provides some evidence of the link between financial activity and growth of the real economy. We model the long-run equilibria for money holding and lending to this sector as being driven by GDP, wealth, the return to financial services and various interest spreads. The dynamics of OFCs' money and lending are shown to be interdependent. We then consider the evidence for interactions between OFCs and other sectors. Our results indicate that M4 lending to OFCs is significantly related to aggregate investment in the long run, but is largely unrelated to the spending of households.
In some quarters an author who attempted to defend monetarism would be viewed in the same light a... more In some quarters an author who attempted to defend monetarism would be viewed in the same light as someone who supported paedophilia or incest! Monetarism represents the forces of darkness, ignorance and destruction which, it is alleged, inflicted untold damage on the British economy (see, for example, Gould, Mills and Stewart, 1981; and Kaldor, 1982). How could any intelligent person defend the indefensible?
International Finance Section, Dept. of Economics, Princeton University eBooks, 1978
... International money and the future of the SDR. Post a Comment. CONTRIBUTORS: Author: Chrystal... more ... International money and the future of the SDR. Post a Comment. CONTRIBUTORS: Author: Chrystal, K. Alec (b. 1946, d. ----. PUBLISHER: International Finance Section, Dept. of Economics, Princeton University (Princeton, NJ). SERIES TITLE: YEAR: 1978. PUB TYPE: Book. ...
Since 1973 (1972 in the case of the UK) the exchange rates of the major industrial countries have... more Since 1973 (1972 in the case of the UK) the exchange rates of the major industrial countries have been floating against one another. This situation is in sharp contrast to the post-war Bretton Woods era during which the major currencies remained pegged for over two decades. During the fixed-rate regime it was natural to neglect the role of exchange rates in the process of macroeconomic adjustment. However, since the advent of floating, it has been necessary to consider the impact of exchange rates as a matter of urgency. Many advocates of floating predicted that a floating-rate regime would show some instability early on but would eventually settle down. This has not been the experience. Exchange rates have continued to be volatile on a short-term basis and have also displayed long cycles which are hard to explain.
The international monetary environment of the early 1980s is very different from that of the earl... more The international monetary environment of the early 1980s is very different from that of the early 1960s or indeed the early 1970s. Despite the intentions of central bankers and finance ministers, in those distant days of the 1967 Rio de Janeiro meetings, to plan for the rational evolution of an official sector-dominated system, expediency appears to have dictated a seemingly haphazard development. Despite the occurrence of a period of severe economic difficulties in many countries — the UK is a good but extreme example where there has been little or no growth in a decade, inflation remains in or close to double figures and unemployment is at a forty-year high — there is no consensus on the proper shape of an international monetary system that would support a return to more prosperous times. Will any system do?
ABSTRACT In the fifteen years leading up to the financial crisis in 2008, there emerged a great d... more ABSTRACT In the fifteen years leading up to the financial crisis in 2008, there emerged a great deal of agreement on the optimal design of monetary policy. This policy 'consensus' was accompanied also by a widely-shared view of how macroeconomies worked as the 'Keynesian' versus 'monetarist' debates slipped into the past. This paper charts the emergence of this consensus and then looks at the way in which the apparently settled ideas of monetary policy have been disrupted by recent events. In particular, it looks at the way in which the crisis has forced a revision of both the targets and instruments of monetary policy.
Preface: BA Section F T.M.Rybczynski The History of Section F D.A.Reisman Notes on the Contributo... more Preface: BA Section F T.M.Rybczynski The History of Section F D.A.Reisman Notes on the Contributors Introduction: Public Choice Analysis of Economic Policy K.A.Chrystal Public Choice and Public Policy R.Pennant-Rea Budget Deficits and the Size of Government in the UK and US: A Public Choice Perspective on the Thatcher and Reagan Years C.Rowley Public Choice: Outrageous Theory and Enraging Tests J.Cullis & P.Jones Politics and Macroeconomic Policy S.Price Public Policy and Public Choice P.Jackson & D.Garrett Some Elements of a European Federal Union: a Public Choice Approach F.Schneider Housing Policy and Public Choice M.Ricketts Science Policy and Technology Policy in a Competitive Economy S.Metcalfe Index
The views expressed herein are those of the author(s) and do not necessarily reflect the views of... more The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
At the conference in Oxford, Mississippi, it was tempting to locate the theme of the conference i... more At the conference in Oxford, Mississippi, it was tempting to locate the theme of the conference in the work of Oxford’s greatest son, and, indeed, one of the greatest literary figures of the twentieth century. William Faulkner. It is clear that Faulkner was a student of the economies of inflation … Why else would he have written a book on ‘Soldiers’ Pay’? It could also be that he anticipated the demise of monetarism in ‘As I Lay Dying’, though this more likely to be an allusion to the Keynesian medium term (since we know what happens to Keynesians in the long run!). No doubt he had Divisia in mind as the ‘Intruder in the Dust’. As far as this chapter is concerned, we shall anticipate the comments of our discussants by suggesting the potential parallel between this and ‘The Sound and the Fury’. This is a story told through the eyes of several different characters, one of whom is a congenital idiot. We shall leave it to others to identify which of us is Benji. Our learned discussants would, no doubt, wish to complete the line in William Shakespeare’s ‘Macbeth’, from which Faulkner drew his title: … ‘it is a tale told by an idiot, full of sound and fury, signifying nothing’.
International Journal of Finance & Economics, 2005
This paper reports estimates of an econometric model of the determinants of OFCs' broad money hol... more This paper reports estimates of an econometric model of the determinants of OFCs' broad money holding and M4 lending to OFCs. This is of interest both as providing information about a component of UK money and credit aggregates and because it provides some evidence of the link between financial activity and growth of the real economy. We model the long-run equilibria for money holding and lending to this sector as being driven by GDP, wealth, the return to financial services and various interest spreads. The dynamics of OFCs' money and lending are shown to be interdependent. We then consider the evidence for interactions between OFCs and other sectors. Our results indicate that M4 lending to OFCs is significantly related to aggregate investment in the long run, but is largely unrelated to the spending of households.
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Papers by Alec Chrystal