TY - BOOK AU - Bolton,Patrick AU - Huang,Haizhou TI - Money Capital: New Monetary Principles for a More Prosperous Society SN - 9780691232379 PY - 2024///] CY - Princeton, NJ PB - Princeton University Press, KW - BUSINESS & ECONOMICS / Economics / Macroeconomics KW - bisacsh KW - BUSINESS & ECONOMICS / Economic History KW - POLITICAL SCIENCE / Public Policy / Economic Policy KW - BUSINESS & ECONOMICS / Finance / General KW - Monetary KW - economics KW - policy KW - money KW - banking KW - fiscal policy KW - international finance KW - development economics KW - finance KW - Monetary Principles: For A New Prosperity KW - Patrick Bolton and Haizhou Huang KW - Princeton University Press KW - Princeton KW - Economics KW - government spending and policy KW - inflation KW - the national debt KW - the coronavirus relief package KW - modern monetary theory KW - Students and scholars in finance KW - macroeconomics KW - public policy KW - international economics KW - government spending KW - Biden administration KW - Federal reserve KW - Interest rates KW - Monetary Theory KW - effects of massive spending on the economy KW - monetarism and political deficit concerns KW - Monetary economics and policy KW - money and banking KW - development economics and finance N1 - Frontmatter --; contents --; List of illustrations and tables --; Preface --; 1 The Poverty of Monetarism --; 2 The Capital Structure of Nations --; 3 Money, Banking, and the Lender of Last Resort --; 4 How Did China Finance Its Growth? --; 5 The Coordination of Fiscal and Monetary Policy --; 6 Money and Sovereignty --; 7 Taking Stock --; Acknowledgments --; References --; Index; restricted access N2 - A novel perspective on monetary and fiscal policy that views money as the equity capital of a nationA conventional economic theory, monetarism, holds that inflation is a monetary phenomenon driven by changes in the supply of money. Yet recent experience—including the aftermath of the financial crisis of 2008 and the economic development of China—contradicts this basic prediction. In this book, leading economists Patrick Bolton and Haizhou Huang offer a novel perspective, viewing monetary economics through the lens of corporate finance. They propose a rich theory of money supply 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; this 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—when it prints money to keep the economy going—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, they argue, 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 UR - https://www.degruyterbrill.com/isbn/9780691232379 UR - https://www.degruyterbrill.com/document/cover/isbn/9780691232379/original ER -