TY - BOOK AU - Benigno,Pierpaolo AU - Benigno,Pierpaolo TI - Monetary Economics and Policy: A Foundation for Modern Currency Systems SN - 9780691265322 PY - 2025///] CY - Princeton, NJ PB - Princeton University Press, KW - BUSINESS & ECONOMICS / Economics / Theory KW - bisacsh KW - BUSINESS & ECONOMICS / Economics / Macroeconomics KW - POLITICAL SCIENCE / Public Policy / Economic Policy KW - BUSINESS & ECONOMICS / Finance / General KW - Monetary Economics and Policy: A Foundation for Modern Currency Systems KW - Pierpaolo Benigno KW - Money KW - Fiat Money KW - Gold Standard KW - Currency KW - Cryptocurrency KW - Bitcoin KW - Inflation KW - Unemployment KW - Quantitative Easing KW - Interest Rate KW - Inflation Targeting KW - Forward Guidance KW - Safe Assets KW - Financial Crisis KW - Central Bank KW - New Keynesian KW - Fiscal Policy KW - Monetarism KW - Modern Monetary Theory KW - Phillips Curve KW - Hyperinflation KW - Unconventional Monetary Policy KW - Zero-Lower Bound KW - Central Bank Digital Currency KW - Helicopter Money N1 - Frontmatter --; Dedication --; Contents --; Preface --; Part I: Currency and Money --; Introduction --; 1. The Value of Currency --; 2. Cash as a Medium of Exchange --; 3. Central Bank Digital Currency --; 4. Private Money --; Part II: Stabilization Policies --; Introduction --; 5. The Benchmark New Keynesian Model --; 6. An AS-AD Graphical Analysis --; 7. Inflation Targeting as an Optimal Policy --; 8. NK Model with a Banking Sector --; Part III. Crisis Models --; Introduction --; 9. Liquidity Trap --; 10. Deleveraging and Credit Crunch --; 11. Shortage of "Safe Assets" --; Part IV: Inflation --; Introduction --; 12. The Inflation-Unemployment Trade-Off --; 13. Hyperinflation --; Part V: Conclusion --; 14. The Future of Monetary Policy --; Part VI: Appendix --; Appendix to Chapter 1 --; Appendix to Chapter 2 --; Appendix to Chapter 3 --; Appendix to Chapter 5 --; Appendix to Chapter 7 --; Appendix to Chapter 8 --; Bibliography --; Index; restricted access N2 - A unified framework for understanding monetary policy, including recent unprecedented interventions by central banksOver the past two decades, monetary policy has been deployed in unprecedented ways, as central banks attempted to mitigate the adverse consequences of the 2007–2008 financial crisis, the COVID-19 global lockdown, and recent inflationary surges. In Monetary Economics and Policy, Pierpaolo Benigno offers a new way to understand the potency and effectiveness of monetary policy, presenting a unified modeling framework to analyze policy challenges posed by both paper and digital currency systems. He investigates current theoretical and policy controversies, drawing connections with historical themes in monetary economics.Benigno examines how central banks control the value of their currency amid competition from cryptocurrencies and private money-like securities; discusses the desirability of inflation targeting for macroeconomic stabilization; and explores theoretical grounds for the unconventional monetary policies seen in the recent period of zero nominal interest rates, including forward guidance, quantitative and credit easing, and helicopter money. He accompanies his analysis with an innovative visual representation of the New Keynesian model and inflation-targeting policies.Benigno’s novel framework also allows the study of monetary policy normalization through quantitative tightening toward what has become the “new normal.” He discusses the optimal provision of liquidity and the different roles of the government and financial intermediaries. Finally, he recounts historical controversies regarding the inflation-unemployment trade-off to understand the 2020s inflationary surge and delves into the causes and dynamics of hyperinflations, tracing them to the subtle, ambiguous linkages between monetary and fiscal policy and weak balance-sheet conditions for the central bank UR - https://www.degruyterbrill.com/isbn/9780691265322 UR - https://www.degruyterbrill.com/document/cover/isbn/9780691265322/original ER -