Time and Money presents a new macroeconomic framework for dealing with the perennial issues of economic growth and business cycles. With attention to the time element in the economy's production process, the logic and the graphics of capital-based macroeconomics highlight the contrast between genuine growth and unsustainable expansions. Constructed to capture the insights of the Austrian economists Ludwig von Mises and Friedrich A. Hayek, this same interlocking graphical framework demonstrates the coherence of Austrian macroeconomics and facilitates the analysis of deficit spending, credit controls, tax reform, and more.
       An alternative, labor-based framework is presented to depict the failure-prone macroeconomy of John Maynard Keynes's General Theory. With key relationships common to both frameworks, the playoff between them allows Keynes and Hayek to go head-to-head. This exercise in comparative theories holds promise for a final resolution of the critical Keynes-Hayek debate of the 1930s: Does a market economy have self-regulating tendencies? Keynes said no; Hayek said yes. The Keynesian labor-based framework, demonstrably truer to Keynes than the more conventional ISLM and Aggregate-Supply/Aggregate-Demand frameworks, also allows for a unified treatment of Keynes's policy recommendations for stabilising the macroeconomy and his more lofty proposals for fundamental social reform.
       After suggesting that the Keynes-Hayek debate can be resolved in favor of Hayek, both frameworks are used to trace and evaluate the developments of modern macroeconomics, including two different strands of monetarism and some essential aspects of new classicism and new Keynesianism. The increasing sterility and irrelevance of modern macroeconomic theorizing is ultimately attributed to the inadequate treatment of the time element in macroeconomic relationships or, more pointedly, to the neglect of the issue of capital structure and intertemporal coordination. The suggested remedy entails reintroducing the time element in the form of a thoroughgoing capital-based macroeconomics.

1. The Macroeconomics of Capital Structure
      The Long and the Short of It
      What's in a Name?
            Labor-Based Macroeconomics
            Money-Based Macroeconomics
            Capital-Based Macroeconomics
      An Exercise in Comparative Frameworks
      Point of Departure and Style of Argument
      A Readers' Guide

2. An Agenda for Macroeconomics
      What About Expectations?
      The Keynesian Spur
      Meeting the Challenge to Austrian Theory
      What About Capital?

3. Capital-Based Macroeconomics
      The Elements of Capital-Based Macroeconomics
            The Market for Loanable Funds
            The Production Possibilities Frontier
            The Intertemporal Structure of Production
      The Macroeconomics of Capital Structure
      The Macroeconomics of Secular Growth

4. Sustainable and Unsustainable Growth
      Changes in Technology and Resource Availabilities
      Changes in Intertemporal Preferences
      The Macroeconomics of Boom and Bust
      The Elasticity of Expectations and the Lag Structure

5. Fiscal and Regulatory Issues
      Deficit Finance
      Deficit Spending
            Inert Government Projects
            Nationalized Industries
            Infrastructure
      Credit Control
            Smith's Usury Laws
            Broad-Based Usury Laws
      Tax Reform

6. Risk, Debt and Bubbles: Variation on a Theme
      Three Components of the Interest Rate
      Risk Control and Risk Externalization
      Fiscal Excesses in Perspective
            Domestic Savers
            The Federal Reserve
            Foreign Savers
      The Dynamics of Deficit Accommodation
      Coping Without a Crystal Ball
      Booms and Busts in the "Emerging Nations"

7. Labor-Based Macroeconomics
      The Elements of Keynesian Economics
            The Labor Market
            The Wage Rate
            The Structure of Industry
            Income and Expenditures
            The Production Possibilities Frontier
            The Market for Loanable Funds
      Contrasting Visions

8. Cyclical Unemployment and Policy Prescription
      From Accident to Design
      Prospects for a Spontaneous Order
      The Paradox of Thrift
      Keynes and Hayek: Head to Head

9. Secular Unemployment and Social Reform
      The Fetish of Liquidity and Secular Unemployment
      The Distribution of Income and Secular Unemployment
      Lenders' Risk and Decentralized Decision-making
      Full Employment through Centralization

10. Boom and Bust in the Monetarist Vision
      Monetarist Frameworks
            Patinkin's Model
            Short-Run/Long-Run Phillips Curve Analysis
            Resolving a Seeming Contradiction
      Boom and Bust in the Labor-Based Framework
      Boom and Bust in the Capital-Based Framework
      Monetarist and Austrian Visions: A Reconciliation
      Morphing from Friedman to Hayek

11. Monetary Disequilibrium Theory
      Friedman's Plucking Model
      Levels of Aggregation
      Macroeconomic Data and Microeconomic Doubts
      Ceilings and Asymmetries
      Depressions as Monetary Disequilibrium
      Plucking in the Keynesian and Austrian Frameworks
      Rival Theories?
      Interlocking Pieces in Macroeconomic Puzzle

12. Macroeconomics: Taxonomy and Perspective
      Capital-Based Macroeconomics in Perspective
      Visions, Frameworks, and Judgments

BIBLIOGRAPHY

Fig. 3.1 The Market for Loanable Funds (or for Investable Resources)
Fig. 3.2 The Production Possibilities Frontier (Guns and Butter)
Fig. 3.3 Capital and Growth (Post-War Japan and the United States)
Fig. 3.4 Gross Investment and Growth (Contraction, No Growth, and Expansion)
Fig. 3.5 The Structure of Production (Continuous-Input/Point-Output)
Fig. 3.6 The Structure of Production (Continuous-Input/Continuous-Output)
Fig. 3.7 The Macroeconomics of Capital Structure
Fig. 3.8 Secular Growth (with an Assumed Interest-Rate Neutrality)

Fig. 4.1 Technology-Induced Growth
Fig. 4.2 Saving-Induced Capital Restructuring
Fig. 4.3 Capital Restructuring (with Auxiliary Labor-Market Adjustments)
Fig. 4.4 Boom and Bust (Policy-Induced Intertemporal Disequilibrium)
Fig. 4.5 A Generalization of the Austrian Theory

Fig. 5.1 Deficit Finance (Shifting the Debt Burden Forward)
Fig. 5.2 Deficit Finance (with Ricardian Equivalence)
Fig. 5.3 Deficit Spending (Borrowing to Finance Inert Government Projects)
Fig. 5.4 Deficit Spending (Borrowing to Finance Infrastructure)
Fig. 5.5 Credit Control (Broad-Based Interest-Rate Ceiling)
Fig. 5.6 Tax Reform (From an Income Tax to a Consumption Tax)

Fig. 7.1 Labor-Based Macroeconomics (Full Employment by Accident)
Fig. 7.2 Labor-Based Macroeconomics (with Keynesian Adjustment Potentials)
Fig. 7.3 Labor-Based Macroeconomics (with Austrian Adjustment Potentials)

Fig. 8.1 Market Malady (A Collapse in Investment Demand)
Fig. 8.2 Locking in the Malady (with a Flexible Wage Rate)
Fig. 8.3 Compounding the Market Malady (with a Scramble for Liquidity)
Fig. 8.4 Full Employment by Design (through Monetary and Fiscal Policies)
Fig. 8.5 The Keynesian Vision Plus Self-Correcting Tendencies
Fig. 8.6 The Paradox of Thrift (Saving More Means Earning Less)
Fig. 8.7 The Paradox of Thrift (Keynesian Vision in a Hayekian Framework)
Fig. 8.8 Resolving the Paradox of Thrift (with Intertemporal Restructuring)
Fig. 8.9 Keynes and Hayek (Head to Head)
Fig. 8.10 A Contrast of Visions (Keynes and Hayek)

Fig. 9.1 Fetish of Liquidity (with Assumed Structural Fixity)
Fig. 9.2 Fetish of Liquidity (with the Implied Structural Adjustments)
Fig. 9.3 Full Investment (with Zero Interest and No Scarcity Value of Capital)

Fig. 10.1 Monetarist Framework (Wicksell-Patinkin)
Fig. 10.2 Monetarist Framework (Friedman-Phelps)
Fig. 10.3 Labor-Market Adjustments to an Increased Money Supply
Fig. 10.4 Labor-Based Framework (with All Magnitudes in Real Terms)
Fig. 10.5 Boom and Bust (A Labor-Based View of Phillips Curve Analysis)
Fig. 10.6 Boom and Bust (A Labor-Based View of the Real-Cash-Balance Effect)
Fig. 10.7 Capital-Based Framework (with All Magnitudes in Real Terms)
Fig. 10.8 Boom and Bust (A Capital-based View of Phillips Curve Analysis)
Fig.. 10.9 Boom and Bust (A Capital-based View of the Real-Cash-Balance Effect)

Fig. 11.1 Collapse and Recovery (Friedman's Plucking Model)
Fig. 11.2 Monetary Disequilibrium (in the Labor-Based Framework)
Fig. 11.3 Monetary Disequilibrium (in the Capital-Based Framework)

Fig. 12.1 Graphical Taxonomy of Visions
Fig. 12.2 A Matrix of Frameworks and Judgments