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Synopsis
"This marvelous book is a fascinating and thoroughly original combination of economic theory, economic history, and the history of economic thought. In it, Sargent and Velde set out a simple, modern framework for thinking about monetary systems in which several denominations of currency circulate at once. They then use this framework to illuminate the workings of a huge variety of monetary arrangements in use from the Middle Ages to the present, and to trace the evolution of our understanding of the principles of monetary management. This is applied economics at its best."--Robert E. Lucas, Jr., University of Chicago, 1995 Nobel Laureate in Economic Sciences
"Thomas Sargent and François Velde have written a quiet masterpiece. The Big Problem of Small Change solves a nearly thousand-year old puzzle in monetary economics, it is a beautiful economic history, and a brilliant piece of intellectual history, showing how important ideas are in economic affairs."--John H. Cochrane, University of Chicago
"It is rare to be able to say of a book that it is not only of considerable importance from a scholarly point of view, but that it is also well written and aesthetically pleasing. Yet that is precisely the sort of book this is. The Big Problem of Small Change is also unusually clear and has none of the apparent obfuscation that other scholars accuse economists of practicing. Most scholars get confused when dealing with mint ratios, Gresham's Law, seigniorage rates, and so on. Amazingly, however, this is a book that will please even the most numismatically challenged among them."--Joel Mokyr, Northwestern University
"This collaboration between a prominent economic theorist and a very learned historian of European monetary thought and experience yields a rather unusual book, one that may herald the way the world is going. To an economist and financial historian, this is pretty interesting stuff."--Richard Sylla, New York University
Publishers Weekly
From Charlemagne's introduction of the silver penny in 800 AD to about the middle of the 19th century, small denomination coins were a headache for governments (due to production costs and constant shortages and depreciations); it was often more profitable for owners to melt down the small coins to make larger denominations. In The Big Problem of Small Change, Stanford University economics professor Thomas J. Sargent and Federal Reserve Bank economist Franeois R. Velde describe how economists finally solved this problem by introducing fiat money (coins whose value was symbolic), paving the way for modern forms of currency and credit. This elegantly written, scholarly work will appeal to those interested in financial history or monetary theory. ( Feb.) Copyright 2001 Cahners Business Information.