Since the inflationary 1970s, theoretical work on monetary policy has concentrated almost exclusively on price-level stabilization and the avoidance of nominal shocks. In the aftermath of the collapse of financial bubbles in various parts of the world, the accomplishments and limitations of this dominant approach are debated in this volume edited by Axel Leijonhufvud, with contributions by a number of noted monetary economists, including Nobel Laureate Robert Lucas.

JACQUES DRÈZE CORE, Catholic University of Louvain, Belgium JEAN-PAUL FITOUSSI Institut d'Études Politiques de Paris, France JEAN-LUC GAFFARD University of Nice Sophia-Antipolis, France JEAN-MICHEL GRANDMONT CREST, Centre National de la Recherche Scientifique, Paris, France SEPPO HONKAPOHJA University of Helsinki, Finland LARS JONUNG Stockholm School of Economics, Sweden DAVID LAIDLER University of Western Ontario, Canada ROBERT LUCAS University of Chicago, USA RAMON MARIMON European University Institute, Florence, Italy JACQUES MÉLITZ Centre de Recherche en Economie et Statistique, Paris, France HERACLES POLEMARCHAKIS Catholic University of Louvain, Belgium PIER LUIGI SACCO University of Bologna, Italy HANS-WERNER SINN University of München, Germany ERICH STREISSLER Institut für Wirtschaftwissenschaft, Universität, Austria JUAN URRUTIA Universidad Carlos III, Madrid, Spain ALBERT WOJNILOWER The Clipper Group, New York, USA