Political business cycles: the political economy of money, inflation, and unemployment

Abstract

Foreword / Axel Leijonhufvud xv Introduction and Summary / Patricia Dillon and Thomas D. Willett 1 Part One: The Political and Economic Causes of the Great Stagflation 1. Explaining the Great Stagflation: Toward a Political Economy Framework / Thomas D. Willett and King Banaian 35 2. Inflation and Politics: Six Theories in Search of Reality / William Mitchell 63 3. Models of the Political Process and Their Implications for Stagflation: A Public Choice Perspective / Thomas D. Willett and King Banaian 100 Appendix: An Overview of Political Business Cycles / King Banaian 116 4. The Keynesian Legacy: Does Countercyclical Policy Pay Its Way? / Thomas Mayer 129 5. Wage and Price Rigidities, Supply Restrictions, and the Problem of Stagflation / Gottfried Haberler 145 6. The Inflation Tax / J. Harold McClure Jr. and Thomas D. Willett 177 7. The Decline of Gold as a Source of U.S. Monetary Discipline / John Briggs, D. B. Christenson, Pamela Martin, and Thomas D. Willett 186 8. Inflation Hypothesis and Monetary Accommodation: Postwar Evidence from the Industrial Countries / Thomas D. Willett, King Banaian, Leroy O. Laney, Mohand Merzkani, and Arthur D. Warga 200 Part Two. The Political Business Cycle 9. Politico-Economic Models of Macroeconomic Policy: A Review of the Empirical Evidence / Friederich Schneider and Bruno S. Frey 239 10. Does the Political Business Cycle Dominate U.S. Employment and Inflation? Some New Evidence / Stephen E. Haynes and Joe Stone 276 11. Political Business Cycles and the Capital Stock: Variations on an Austrian Theme / Peter Lewin 294 Part Three. The Political Economy of Monetary Policy 12. Problems Inherent in Political Money Supply Regimes: Some Historical and Theoretical Lessons / Lawrence H. White 301 13. Two Monetary and Fiscal Policy Myths / Thomas Havrilesky 320 14. Monetary Policy: The Rhetoric versus the Record / Raymond E. Lombra 337 15. Politics and Monetary Policy / Nathaniel Beck 366 Part Four. Proposals for Reform 16. Evaluating Proposals fro Fundamental Monetary Reform / Thomas Mayer and Thomas D. Willett 398 17. Fiat Money and the Constitution: A Historical Review / Gregory B. Christainson 424 18. Monetary Confidence, Privately Produced Monies, and Domestic and International Monetary Reform / Michael Melvin 435 19. Depoliticizing the Supply of Money / Lawrence H. White 460 20. Fedbashing and the Role of Monetary Arrangements in Managing Political Stress / Edward J. Kane 479 21. Subordinating the Fed to Political Authorities Will Not Control Inflationary Tendencies / King Banaian, Leroy O. Laney, John McArthur, and Thomas D. Willett 490 Index 509