The Theory of Monetary Institutions

* Covers "free banking" monetary thought in a clear, accessible manner* Offers an effective balance between theory and practical applications* Combines plain text with formal explanations* Discusses models such as Diamond--Dybvig and seigniorage. . The Theory of Monetary Institutions analyzes the often overlooked - but fundamental - questions about monetary policy regimes: How and why have monetary institutions evolved into their present forms? What are the leading arguments for and against government involvement in money and banking? What models do we have for explaining how monetary authorities choose to behave in a discretionary fiat money regime, and how well do they fit? What alternatives to the current regime are available, and how would they work? The Theory of Monetary Institutions covers free banking monetary thought and a theoretical account of the evolution of monetary institutions.