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Phillip D. Cagan

October 15, 2023

Phillip David Cagan (April 30, 1927 – June 15, 2012) was an American scholar and author. He was Professor of Economics Emeritus at Columbia University.

Phillip Cagan
BornApril 30, 1927
Seattle, Washington, U.S.
DiedJune 15, 2012 (2012-06-16) (aged 85)[1]
Palo Alto, California, U.S.
NationalityAmerican
Academic career
InstitutionColumbia University (1966–95)
Brown University (1959–66)
University of Chicago (1955–58)
NBER (1954–55)
FieldEconomist
School or
tradition		Chicago School of Economics
Alma materUniversity of Chicago (MA, PhD)
UCLA (BA)
Doctoral
advisor		Milton Friedman
ContributionsAnalysis of money
Analysis of inflation
AwardsFellow, Econometric Society (1975)

Biography Edit

Born in Seattle, Washington, Cagan and his family moved to Southern California shortly thereafter. Cagan joined the U.S. Navy at age 17 and fought in World War II. After the war, Cagan decided to go to college, and earned his B.A. from UCLA in 1948. Cagan received his M.A. in 1951, and his Ph.D. in Economics in 1954 from the University of Chicago.[2]

After graduate school, Cagan joined the National Bureau of Economic Research (NBER) in New York City where he worked for two years. Then Cagan re-entered academia, teaching at the University of Chicago for three years, and at Brown University for seven years. In 1966 Cagan was hired by Columbia University, where he taught economics for nearly thirty years — save for fifteen months spent in Washington, D.C., when he was on the staff of 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 Edit

Cagan's work focused on monetary policy and the control of inflation. Cagan has published over 100 books, journal articles, reviews, reports, and pamphlets on these and other topics in macroeconomics. He is perhaps best known for Determinants and Effects of Changes in the Stock of Money, 1875–1960, a work that sought to identify the "causal relationships between changes in money, prices and output."[3] The book, part of the NBER series that contained Milton Friedman and 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 differential equations and an ingenious use of exponentially weighted averages",[6] analyzed seven hyperinflations and found that "the parameters of money 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 Econometric Society (the most prestigious society in the field),[11] and was mentioned as a possible candidate for the Nobel Prize in Economics.[12] However, following his death in 2012, he is no longer eligible for a Nobel Prize.

Selected bibliography Edit

  • Cagan, Phillip (1956). "The Monetary Dynamics of Hyperinflation". In Friedman, Milton (ed.). Studies in the Quantity Theory of Money. Chicago: University of Chicago Press. 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 Edit

Notes Edit

  1. ^ "Phillip David Cagan Obituary: View Phillip Cagan's Obituary by New York Times". Legacy.com. 1927-04-30. Retrieved 2012-08-31.
  2. ^ a b Van Overtveldt, Johan (2007). The Chicago School: How the University of Chicago Assembled the Thinkers Who Revolutionized Economics and Business. Chicago: Agate Publishing. ISBN 978-1-932841-14-5.
  3. ^ Cagan, Phillip (1965). Determinants and Effects of Changes in the Stock of Money, 1875–1960. New York: Columbia University Press.
  4. ^ Klein, Benjamin (1977). "Review: Did Monetary Forces Cause the Great Depression?". The Journal of Business. 50 (2): 244–248. doi:10.1086/295938. ISSN 0021-9398. JSTOR 2352161.
  5. ^ Cagan, Phillip (1956). "The Monetary Dynamics of Hyperinflation". In Friedman, Milton (ed.). Studies in the Quantity Theory of Money. Chicago: University of Chicago Press. ISBN 0-226-26406-8.
  6. ^ Angell, James W.; Friedman, Milton; Cagan, Phillip; Klein, John J.; Lerner, Eugene M.; Selden, Richard T. (1957). "Review: Studies in the Quantity Theory of Money". Journal of the American Statistical Association. American Statistical Association. 52 (280): 599–602. doi:10.2307/2281729. JSTOR 2281729.
  7. ^ Khan, Mohsin S. (1980). "Dynamic Stability in the Cagan Model of Hyperinflation". International Economic Review. Blackwell Publishing. 21 (3): 577–582. doi:10.2307/2526353. JSTOR 2526353.
  8. ^ Taylor, Mark P. (1991). "The Hyperinflation Model of Money Demand Revisited". Journal of Money, Credit and Banking. Blackwell Publishing. 23 (3): 327–351. doi:10.2307/1992749. JSTOR 1992749.
  9. ^ Deviatov, Alexei; Neil Wallace (2006). (PDF). Kyiv, Ukraine: Kyiv Economics Institute. Archived from the original (PDF) on 2007-09-27.
  10. ^ Goodfriend, Marvin (1979). (PDF). Vol. No 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.
  11. ^ "Election of Fellows, 1975". Econometrica. 44 (2): 415–419. 1976. ISSN 0012-9682. JSTOR 1912742.
  12. ^ Tufte, Dave (2002). . Archived from the original on 2007-09-27. Retrieved 2007-08-16.

Further reading Edit

  • Van Overtveldt, Johan (2007). The Chicago School: How the University of Chicago Assembled the Thinkers Who Revolutionized Economics and Business. Chicago: Agate Publishing. 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..
  • Engsted, Tom (1993). "Cointegration and Cagan's Model of Hyperinflation under Rational Expectations". Journal of Money, Credit and Banking. Blackwell Publishing. 25 (3): 350–360. doi:10.2307/2077767. JSTOR 2077767.
  • Salemi, Michael K.; Thomas J. Sargent (1979). "The Demand for Money During Hyperinflation under Rational Expectations: II". International Economic Review. Blackwell Publishing. 20 (3): 741–758. doi:10.2307/2526270. JSTOR 2526270.
  • Frenkel, Jacob A. (1977). "The Forward Exchange Rate, Expectations, and the Demand for Money: The German Hyperinflation". International Economic Review. 67 (4): 653–670. ISSN 0002-8282. JSTOR 1813397.
  • Sargent, Thomas J. (1977). "The Demand for Money During Hyperinflation under Rational Expectations: I". International Economic Review. Blackwell Publishing. 18 (1): 59–82. doi:10.2307/2525769. JSTOR 2525769.
  • Sargent, Thomas J.; Neil Wallace (1973). "Rational Expectations and the Dynamics of Hyperinflation". International Economic Review. Blackwell Publishing. 14 (2): 328–350. doi:10.2307/2525924. JSTOR 2525924. S2CID 153883996.
  • Hu, Teh-wei (1971). "Hyperinflation and the Dynamics of the Demand for Money in China, 1945–1949". Journal of Political Economy. 79 (1): 186–195. doi:10.1086/259733. JSTOR 1837395. S2CID 153790758.
  • Barro, Robert J. (1970). "Inflation, the Payments Period, and the Demand for Money" (PDF). The Journal of Political Economy. 78 (6): 1228–1263. doi:10.1086/259707. JSTOR 1830622. S2CID 67760257.

External links Edit

  • Faculty Emeriti, Department of Economics, Columbia University
  • , New School's CEPA Website
  • , New School's CEPA Website
  • Thayer Watkins, "Episodes of Hyperinflation," 2012-12-07 at the Wayback Machine San José State University Department of Economics

October 15, 2023
phillip, cagan, phillip, david, cagan, april, 1927, june, 2012, american, scholar, author, professor, economics, emeritus, columbia, university, phillip, caganbornapril, 1927seattle, washington, diedjune, 2012, 2012, aged, palo, alto, california, nationalityam. Phillip David Cagan April 30 1927 June 15 2012 was an American scholar and author He was Professor of Economics Emeritus at Columbia University Phillip CaganBornApril 30 1927Seattle Washington U S DiedJune 15 2012 2012 06 16 aged 85 1 Palo Alto California U S NationalityAmericanAcademic careerInstitutionColumbia University 1966 95 Brown University 1959 66 University of Chicago 1955 58 NBER 1954 55 FieldEconomistSchool ortraditionChicago School of EconomicsAlma materUniversity of Chicago MA PhD UCLA BA DoctoraladvisorMilton FriedmanContributionsAnalysis of moneyAnalysis of inflationAwardsFellow Econometric Society 1975 Contents 1 Biography 2 Contributions to economic science 3 Selected bibliography 4 See also 5 Notes 6 Further reading 7 External linksBiography EditBorn in Seattle Washington Cagan and his family moved to Southern California shortly thereafter Cagan joined the U S Navy at age 17 and fought in World War II After the war Cagan decided to go to college and earned his B A from UCLA in 1948 Cagan received his M A in 1951 and his Ph D in Economics in 1954 from the University of Chicago 2 After graduate school Cagan joined the National Bureau of Economic Research NBER in New York City where he worked for two years Then Cagan re entered academia teaching at the University of Chicago for three years and at Brown University for seven years In 1966 Cagan was hired by Columbia University where he taught economics for nearly thirty years save for fifteen months spent in Washington D C when he was on the staff of 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 EditCagan s work focused on monetary policy and the control of inflation Cagan has published over 100 books journal articles reviews reports and pamphlets on these and other topics in macroeconomics He is perhaps best known for Determinants and Effects of Changes in the Stock of Money 1875 1960 a work that sought to identify the causal relationships between changes in money prices and output 3 The book part of the NBER series that contained Milton Friedman and 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 differential equations and an ingenious use of exponentially weighted averages 6 analyzed seven hyperinflations and found that the parameters of money 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 Econometric Society the most prestigious society in the field 11 and was mentioned as a possible candidate for the Nobel Prize in Economics 12 However following his death in 2012 he is no longer eligible for a Nobel Prize Selected bibliography EditCagan Phillip 1956 The Monetary Dynamics of Hyperinflation In Friedman Milton ed Studies in the Quantity Theory of Money Chicago University of Chicago Press 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 EditMonetarismNotes Edit Phillip David Cagan Obituary View Phillip Cagan s Obituary by New York Times Legacy com 1927 04 30 Retrieved 2012 08 31 a b Van Overtveldt Johan 2007 The Chicago School How the University of Chicago Assembled the Thinkers Who Revolutionized Economics and Business Chicago Agate Publishing 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 Klein Benjamin 1977 Review Did Monetary Forces Cause the Great Depression The Journal of Business 50 2 244 248 doi 10 1086 295938 ISSN 0021 9398 JSTOR 2352161 Cagan Phillip 1956 The Monetary Dynamics of Hyperinflation In Friedman Milton ed Studies in the Quantity Theory of Money Chicago University of Chicago Press ISBN 0 226 26406 8 Angell James W Friedman Milton Cagan Phillip Klein John J Lerner Eugene M Selden Richard T 1957 Review Studies in the Quantity Theory of Money Journal of the American Statistical Association American Statistical Association 52 280 599 602 doi 10 2307 2281729 JSTOR 2281729 Khan Mohsin S 1980 Dynamic Stability in the Cagan Model of Hyperinflation International Economic Review Blackwell Publishing 21 3 577 582 doi 10 2307 2526353 JSTOR 2526353 Taylor Mark P 1991 The Hyperinflation Model of Money Demand Revisited Journal of Money Credit and Banking Blackwell Publishing 23 3 327 351 doi 10 2307 1992749 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 No 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 Election of Fellows 1975 Econometrica 44 2 415 419 1976 ISSN 0012 9682 JSTOR 1912742 Tufte Dave 2002 Nobel Prize Predictions Archived from the original on 2007 09 27 Retrieved 2007 08 16 Further reading EditVan Overtveldt Johan 2007 The Chicago School How the University of Chicago Assembled the Thinkers Who Revolutionized Economics and Business Chicago Agate Publishing 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 Engsted Tom 1993 Cointegration and Cagan s Model of Hyperinflation under Rational Expectations Journal of Money Credit and Banking Blackwell Publishing 25 3 350 360 doi 10 2307 2077767 JSTOR 2077767 Salemi Michael K Thomas J Sargent 1979 The Demand for Money During Hyperinflation under Rational Expectations II International Economic Review Blackwell Publishing 20 3 741 758 doi 10 2307 2526270 JSTOR 2526270 Frenkel Jacob A 1977 The Forward Exchange Rate Expectations and the Demand for Money The German Hyperinflation International Economic Review 67 4 653 670 ISSN 0002 8282 JSTOR 1813397 Sargent Thomas J 1977 The Demand for Money During Hyperinflation under Rational Expectations I International Economic Review Blackwell Publishing 18 1 59 82 doi 10 2307 2525769 JSTOR 2525769 Sargent Thomas J Neil Wallace 1973 Rational Expectations and the Dynamics of Hyperinflation International Economic Review Blackwell Publishing 14 2 328 350 doi 10 2307 2525924 JSTOR 2525924 S2CID 153883996 Hu Teh wei 1971 Hyperinflation and the Dynamics of the Demand for Money in China 1945 1949 Journal of Political Economy 79 1 186 195 doi 10 1086 259733 JSTOR 1837395 S2CID 153790758 Barro Robert J 1970 Inflation the Payments Period and the Demand for Money PDF The Journal of Political Economy 78 6 1228 1263 doi 10 1086 259707 JSTOR 1830622 S2CID 67760257 External links EditFaculty 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 Jose State University Department of Economics Retrieved from https en wikipedia org w index php title Phillip D Cagan amp oldid 1143015887, wikipedia, wiki, book, books, library,

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