This book presents an alternative approach to monetary theory that differs from the General Theory of Keynes, the Monetarism of Friedman, and the New Classicism of Lucas. Particular attention is given to the work of Hawtrey and his analysis of financial crises and his explanation of the Great Depression. The unduly neglected monetary theory of Hawtrey is examined in the context of his contemporaries Keynes and Hayek and the subsequent contributions of Friedman and of the Monetary Approach to the Balance of Payments. Studies in the History of Monetary Theory aims to highlight the misunderstandings of the quantity theory and the price-specie-flow mechanism and to explain their unfortunate consequences for the subsequent development of monetary theory. The book is relevant to researchers, students, and policymakers interested in the history of economic thought, monetary theory, and monetary policy. “Understanding the uses and limitations of monetary policy requires first understanding how economists think about money, past, present and future. That the history of monetary theory, like the history of economic thought generally, has fallen out of fashion in academia is all the more reason to value the important work of David Glasner and the insightful essays collected in this book.” (–Barry Eichengreen, University of California, Berkeley, USA.) “David Glasner has been pursuing fundamental questions in monetary theory in a deep way for over thirty years. This collection represents the distillation of his wisdom, and any economist interested in these issues will learn a great deal by reading these pieces. They are deep in the theoretical sense but practical as well.” (–Tyler Cowen, George Mason University, USA) “David Glasner challenges much conventional wisdom about monetary history, and his essays are invariably provocative, well researchedand clearly written. They are a pleasure to read. They deserve serious attention from anyone interested in how ideas about the monetary system have, and still do, interact with its evolution and operation.” (–David Laidler, University of Western Ontario, Canada.) “David Glasner has pulled together a lifetime of erudite work on the history of monetary thought in this collection of papers. It is divided into two main blocks, the first part revisiting the UK classical monetary debates of the early 19 th century, and the second part primarily on the contribution of Hawtrey and Hayek to interwar monetary issues. All are well worth reading, but I especially liked the emphasis on Hawtrey’s contribution.” (–Charles Goodhart, London School of Economics, United Kingdom.) “This collection of essays is both an engaging excursion into the history of monetary thought, and a powerful case for an approach to macroeconomics that allows for heterogeneity in beliefs and adjustments to disappointed expectations. It will be of value to students of modern macroeconomics who would like a clear-headed appraisal of the limitations of textbook models, by someone who thinks with exceptional clarity about these complex and contentious issues.” (–Rajiv Sethi, Barnard College, Columbia University, USA.) “This book will surely give the history of economic thought a good name. Its lucid and convincing analyses of the celebrated debates relating to monetary theory from Hume through to Cairnes, and to the twentieth-century contributions by Hawtrey, Keynes and Hayek render it ideal for advanced courses. The author’s account of the influences governing his intellectual development provides an interesting case-study of the informal lines of communication at play in the academic context.” (–Samuel Hollander, University of Toronto, Canada.) “This delightful book reviews, from a modern perspective, some classic debates in monetary economics. Beyond their historical interest, these debates still appear in contemporary discussions, even if dressed in different clothes. Take the Real Bills Doctrine, but rewrite it in terms of shadow banks: if non-conventional financial institutions lend only on the security of real bills, can they create too much money? Anyone interested in macroeconomics will benefit much from reading Glasner’s collection of essays.” (–Jesus Fernandez-Villaverde, University of Pennsylvania, USA) “David Glasner is a well-known historian of monetary economics and editor of the widely-read Business Cycles and Depressions: An Encyclopedia. In this inspiring collection, he focuses on controversies in classical monetary theory and contributions by Keynes, Hayek and Glasner‘s real hero, Ralph Hawtrey, who significantly advanced the analysis of monetary factors in economic fluctuations. The underlying unity is Glasner‘s development of the implications of the monetaryapproach to the balance of payments and endogenous money.” (–Harald Hagemann, University of Hohenheim, Germany) “David Glasner's book captures his lifetime exploration into the deeper longstanding questions of monetaryand macroeconomic theor