ABSTRACT OF PAPER
Title: “Woodford and Wicksell: a cashless economy or a moneyless economy framework ?”
Author: BARBAROUX Nicolas
Recently, one of the most fruitful debate in monetary macroececonomics that fascinates -and opposed- academics and policymakers has lied in the relevancy of money within the monetary policy analysis. Since the publication of King and Goodfriend 1997's article that gave birth to a new current -the New Neoclassical Synthesis- money seems to be de-emphasized. A new step has been reached in 2003 with Woodford's monetary treatise that legitimates a Cashless framework. Woodford captures the "implied path of the money supply or the determinants of money demand" (Woodford, 2003, p.237) in the determination of the equilibrium of output and prices, without having to model the volume of money explicitly. Woodford gives his theory a Wicksellian flavour by comparing his cashless economy framework with Wicksell's pure credit economy framework. Such a legacy gives the impression that Wicksell's original writings downgraduated money for the conduct of monetary policy. This paper copes with the role of money in Woodford’s model. First, the article will restore the proper importance of money in Wicksell's original theory. After a short presentation of Woodford’s basic model, thus, we will focus on the reactions from Neo-monetarit economists–such as Nelson, Mc Callum or Meltzer- to Woodford's Neo-Wicksellianism. The Woodfordian anti-monetarism will be discussed. Such inquiry will allow us to give an answer on the place and status that money holds in a cashless framework.
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