Money Capital: New Monetary Principles for a More Prosperous Society

A novel perspective on monetary and fiscal policy views money as the equity capital of a nation, integrating the real and monetary sides of the economy with a banking sector and debt at its core. This framework challenges the conventional economic theory of monetarism and offers insights into issues such as inflation, monetary and fiscal policy, central banking, money and growth, and the international monetary system.

Format: Hardback
Length: 312 pages
Publication date: 21 May 2024
Publisher: Princeton University Press

A novel perspective on monetary and fiscal policy that views money as the equity capital of a nation offers a richer theory where money can be seen as the equity capital of a nation, playing a similar role as stocks for a company. This innovative framework integrates the real and monetary sides of the economy, with a banking sector and debt at its core. In the financial world, companies issue new shares only if it results in some kind of value creation, which is a basic principle of corporate finance that Bolton and Huang argue can be applied to monetary economics. When the government increases the money supply to finance positive net value investments, it increases output, not inflation. This is evidenced by the strong growth in GDP and money in China over the last four decades, and in the United States during World War II. The effect of increasing money supply depends on how money enters the system and what the money buys. The principles outlined by Bolton and Huang shed new light on a range of issues, including inflation, monetary and fiscal policy, central banking, money and growth, and the international monetary system.

Weight: 666g
Dimension: 165 x 245 x 28 (mm)
ISBN-13: 9780691232225