The Theory of Money and Financial Institutions : Volume 3, Paperback / softback Book

The Theory of Money and Financial Institutions : Volume 3 Paperback / softback

Part of the The MIT Press series


The third and last volume of a work aimed at providing the theoretical underpinnings for an economic dynamics. This is the third and last volume of Martin Shubik's exposition of his vision of "mathematical institutional economics"-a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics.

The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using strategic market games and other game-theoretic methods. There is as yet no general dynamic counterpart to the elegant and mathematically well-developed static theory of general equilibrium.

Shubik's paradigm serves as an intermediate step between general equilibrium and full dynamics.

General equilibrium provides valuable insights on relationships in a closed, friction-free economic structure.

Shubik aims to open up this limited structure to the rich environment of sociopolitical economy without dispensing with conceptual continuity. Volume 3 considers the specific roles of financial institutions and government, aiming to provide the link between the abstract study of invariant economic and financial functions and the ever-changing institutions that provide these functions.

The concept of minimal financial institutions is stressed as a means to connect function with form in a parsimonious manner.


  • Format: Paperback / softback
  • Pages: 680 pages, 22 figures, 64 tables; 86 Illustrations, unspecified
  • Publisher: MIT Press Ltd
  • Publication Date:
  • Category: Econometrics
  • ISBN: 9780262518031


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