We live in a monetary economy, so it is not surprising that money plays an important role within economic theory. The argument of this book is that this role has become too important, and has warped our ability to think about the economy. The important psychological role of money within society has been transferred to monetary aggregates, and they are given far more significance than they deserve. Economists have wasted considerable time discussing reforms to the monetary system, such as Quantitative Easing, Positive Money, and Helicopter Money. We need to instead focus our attention on non-monetary reforms.
This book consists of 22 essays that discuss the role of money within economic theory, and the controversies raised by debates about the role of money. The tone is informal, as the theoretical debates are translated into plain language.