Phillip D. Cagan
Phillip Cagan | |
|---|---|
| Born | April 30, 1927 UCLA (BA) |
| Doctoral advisor | Milton Friedman |
| Contributions | Analysis of money Analysis of inflation |
| Awards | Fellow, Econometric Society (1975) |
Phillip David Cagan (April 30, 1927 – June 15, 2012) was an American scholar and author. He was Professor of Economics Emeritus at Columbia University.
Biography
Born in
After graduate school, Cagan joined the
Council of Economic Advisors
(CEA).
During his time at Columbia, Cagan was also associated with the American Enterprise Institute (AEI) in Washington, D.C., writing on public policy issues.
Cagan lived in Palo Alto, California during his last years.
Contributions to economic science
Cagan's work focused on
Anna J. Schwartz's Monetary History of the United States, 1867–1960, was praised for its "careful empirical work" and called "the most complete study in the area."[4]
Cagan's most important contribution to economics, however, is the article included in Milton Friedman's edited volume Studies in the Quantity Theory of Money (1956), entitled "The Monetary Dynamics of Hyperinflation,"[5] a work that became an "instant classic" in the field.[2]
The article, which contained "extensive manipulation of
demand functions estimated during hyperinflation generally satisfy the condition of dynamic stability that precludes the inflation from being self-generating, or displaying period-to-period oscillations."[7]
After its publication, Cagan's article generated a significant body of work, as a number of leading
macroeconomists either reexamined or extended Cagan's model, most notably "Barro (1970), Sargent and Wallace (1973), Frenkel (1975, 1976a, 1976b, 1977, 1979), Sargent (1977), Abel et al. (1979), Salemi (1979), and Salemi and Sargent (1979)."[8] In addition, monetary economists today often refer to a "Cagan demand function" when modeling the real value of money.[9][10]
Because of the impact that this groundbreaking work had upon the economics profession, Cagan was elected Fellow of the
Nobel Prize in Economics.[12]
However, following his death in 2012, he is no longer eligible for a Nobel Prize.
Selected bibliography
- ISBN 0-226-26406-8..
- ______, "Why Do We Use Money in Open Market Operations?" The Journal of Political Economy, Vol. 66, No. 1 (Feb., 1958), pp. 34–46. [1]
- ______, "The Demand for Currency Relative to the Total Money Supply," The Journal of Political Economy, Vol. 66, No. 4 (Aug., 1958), pp. 303–328, [2]
- ______, Determinants and Effects of Changes in the Stock of Money, 1875–1960, New York: Columbia University Press (1965).[3]
- ______, "The Non-Neutrality of Money In the Long Run: A Discussion of the Critical Assumptions and Some Evidence," Journal of Money, Credit and Banking, Vol. 1, No. 2, Conference on Money and Economic Growth (May, 1969), pp. 207–227. [4]
- ______, Persistent Inflation: Historical and Policy Essays, New York: Columbia University Press (1979).[5]
- ______, "Reflections on Rational Expectations," Journal of Money, Credit and Banking, Vol. 12, No. 4, Part 2: Rational Expectations (Nov., 1980), pp. 826–832. [6]
- ______, "The Choice Among Monetary Aggregates as Targets and Guides for Monetary Policy," Journal of Money, Credit and Banking, Vol. 14, No. 4, Part 2: The Conduct of U.S. Monetary Policy (Nov., 1982), pp. 661–686. [7]
- ______, "Does Endogeneity of the Money Supply Disprove Monetary Effects on Economic Activity?" Journal of Macroeconomics, Vol. 15, (Summer 1993).
- Phillip Cagan and William G. Dewald, "The Conduct of U.S. Monetary Policy: Introduction," Journal of Money, Credit and Banking, Vol. 14, No. 4, Part 2: The Conduct of U.S. Monetary Policy (Nov., 1982), pp. 565–574. [8]
- Phillip Cagan and Arthur Gandolfi, "The Lag in Monetary Policy as Implied by the Time Pattern of Monetary Effects on Interest Rates," The American Economic Review, Vol. 59, No. 2, Papers and Proceedings of the Eighty-first Annual Meeting of the American Economic Association (May, 1969), pp. 277–284 [9]
- Phillip Cagan and Anna J. Schwartz, "Has the Growth of Money Substitutes Hindered Monetary Policy?" Journal of Money, Credit and Banking, Vol. 7, No. 2 (May, 1975), pp. 137–159. [10]
- ______, "The National Bank Note Puzzle Reinterpreted," Journal of Money, Credit and Banking, Vol. 23, No. 3, Part 1 (Aug., 1991), pp. 293–307. [11]
See also
Notes
- ^ "Phillip David Cagan Obituary: View Phillip Cagan's Obituary by New York Times". Legacy.com. 1927-04-30. Retrieved 2012-08-31.
- ^ ISBN 978-1-932841-14-5.
- Cagan, Phillip(1965). Determinants and Effects of Changes in the Stock of Money, 1875–1960. New York: Columbia University Press.
- JSTOR 2352161.
- ISBN 0-226-26406-8.
- JSTOR 2281729.
- JSTOR 2526353.
- JSTOR 1992749.
- ^ Deviatov, Alexei; Neil Wallace (2006). Estimating A Cagan-Type Demand Function For Gold: 1561–1913 (PDF). Kyiv, Ukraine: Kyiv Economics Institute. Archived from the original (PDF) on 2007-09-27.
- ^ Goodfriend, Marvin (1979). An Alternative Method Of Estimating The Cagan Money Demand Function In Hyperinflation Under Rational Expectations (PDF). Vol. 79–05, Working Paper from Federal Reserve Bank of Richmond. Richmond, VA: Federal Reserve Bank of Richmond. Archived from the original (PDF) on 2007-09-28.
- JSTOR 1912742.
- ^ Tufte, Dave (2002). "Nobel Prize Predictions". Archived from the original on 2007-09-27. Retrieved 2007-08-16.
Further reading
- ISBN 978-1-932841-14-5.
- Snowdon, Brian; Vane, Howard R., eds. (2002). "Phillip Cagan". An Encyclopedia of Macroeconomics. Cheltenham, UK: Edward Elgar Publishing. p. 105..
- JSTOR 2077767.
- JSTOR 2526270.
- JSTOR 1813397.
- JSTOR 2525769.
- S2CID 153883996.
- S2CID 153790758.
- S2CID 67760257.
External links
- Faculty Emeriti, Department of Economics, Columbia University
- Major works of Phillip Cagan, New School's CEPA Website
- Overview of Monetarism, New School's CEPA Website
- Thayer Watkins, "Episodes of Hyperinflation," Archived 2012-12-07 at the Wayback Machine San José State University Department of Economics
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