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Monetary Economics - Essay Example

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The main concern of this paper under the title "Monetary Economics" touches upon monetary economic development as a complex historical process, in which monetary economic and noneconomic factors are closely interwoven and as the exploitation of all productive resources…
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Monetary Economics
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Download file to see previous pages Ordinarily, levels of income and rates of increase are given on a per capita basis, to approximate measures of efficiency and welfare (Shin, 2005, 1117).
There are broadly three periods in the early history of monetary economic thought. The first is the period of early industrialization in Europe, the second is the period of industrial revolution in England, i.e. the period from about 1775 to 1832, and the third period falls in the third quarter of the nineteenth century when other countries like Germany and the United States began to catch up with Britain and finally overtook it as the leading industrial power of the world. But monetary economic development as a discipline comprising systematic and scientific study may be said to have developed over the last few decades (Hahn, 2001).
According to Malthus, as long as the wage level is above a certain minimum w0/ population tend to grow very rapidly. Since the actual w never rises above w0/ any short-run increase of the wage is sufficient to provoke a large enough upsurge in population to bring the wage down to a minimum level. Thus, if once the whole world was inhabited, the population would increase in an arithmetic ratio as resources do, and not show a tendency of increasing in a geometric ratio, and then there would be progress. But this progress would consist of a proportional increase in the total quantity of capital and the total number of workers. There would be no increase in the standard of living since by hypothesis, every increase in the living standards, i.e. 
Thus, with its primary focus on population Malthusianism provided a way of looking at the origins of poverty and method of the money supply - and, by extension to more recent times, to underdevelopment which effectively mystified the central role of capitalist relations to production (Ross, 1998). In sum, the principal notion in the classical period was that the population is the effect of monetary economic development (Meier and Rauch, 2000). ...Download file to see next pagesRead More
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