Rethinking the Theory of Money, Credit, and Macroeconomics: A New Statement for the Twenty-First Century [Paperback]

This book provides a comprehensive re-working of the basic principles of monetary macroeconomics in an alternative monetary model (AMM) of economic growth, the business cycle, inflation and income distribution. These principles differ considerably from those advanced in the standard macroeconomics literature and in textbooks. However, the latter have been demonstrably unsuccessful in the promotion of usable macroeconomic policy advice for the past several years, actually decades. A different approach is needed. In particular, the new approach takes seriously the vital role of credit creation and endogenous money in capitalism. It does not imagine that all of the difficult questions of economic policy-making may be resolved within a paradigm that conceptualizes economic activity as merely a question of barter exchange. The result is a blueprint for a set of growth-friendly macroeconomic policies which will promote full employment, financial stability and higher real wages  essentially for the benefit of the long-suffering middle and working classes rather for the chamber of commerce and financial interests.John Smithin is professor emeritus of economics and senior scholar at York University.

This book constitutes a valuable contribution to the literature. Smithins AMM clarifies some unanswered questions of monetary macroeconomics. . . . As an overarching analysis of the monetary
system, this book has much to commend it; I recommend it wholeheartedly. Review of Political Economy

In spite of his modest claim to the contrary, this book is the culmination of a lifelong research program conducted by Professor John Smithin on the relation between economic theory and the social reality that theory supposedly helps us to understand.

With this book, Professor Smithin, drawing from many different intellectual influences, offers an alternative model for us to make sense of monetary phenomena, one that would serve as an important guide for policyls.