In this Paper we analyse how monetary policies will be affected in a cashless society. Our main conclusions are that the central bank will lose its traditional instruments of monetary policy. Open market operations and advances to banks will become ineffective as instruments to control the...

In this Paper we analyse whether the emergence of electronic money is likely to affect the optimal size of monetary unions. We distinguish between two possible future scenarios. In one scenario, electronic money supplants the existing publicly supported monetary networks (including the national...

Frontmatter -- Contents -- Preface -- 1. A Behavioral Macroeconomic Model -- 2. The Transmission of Shocks -- 3. Trade-offs between Output and Inflation Variability -- 4. Flexibility, Animal Spirits, and Stabilization -- 5. Animal Spirits and the Nature of Macroeconomic Shocks -- 6. Stock Prices...