Testing Monetarism [Hardcover]

Testing Monetarismpursues the complex question of the nature of the controversy surrounding monetarist theory and evidence, and the reasons for the persistence of this controversy.

The theory of monetarism is examined in its old guise as the Quantity Theory of Money, and subsequent chapters look at the evolution of the theory to its present form in the period since the 1950's, and Desai weaves together issues of theory with those of econometric evidence. He looks in turn at major predictions of monetarism, critically examining the claims made in the literature in the light of his discussion of the methodology of testing theories and highlights flaws in the empirical data surrounding monetarism.

Introduction
1. The Quantity Theory of Money
2. From the Quantity Theory to Monetarism
3. The Methodology of Testing Economic Theories
4. The Evidence on Monetarist Claims
5. Has Monetarism Failed?
Bibliography
Index

Meghnad Desaiis Emeritus Professor of Economics at the London School of Economics, UK.