As variously stated, The Legacy deals with theories about money, and markets broadly viewed to include money, financial, real goods, and foreign exchange markets ( Frazer 1994a). The theories and the extension of them broadly viewed, however, depend on central banks to which I presently turn for their implementation, in one way or another. Indeed, this world is not easily compartmentalized to fit the artificial classification schemes supplied by the United States's Journal of Economic Literature.
As a consequence of this frailty of economic science, I begin with a package of interrelated theoretic constructs, central bank arrangements, econometric prospects, evolutionary changes, and alternative approaches to the attainment of economic goals.
Chapter 1 states some hypotheses and then discusses the central banks and variations of economic theory. The main policy-connected variations relevant to the central banking matters at hand are the Keynes/Keynesian variation (on occasion with post-Keynesian flairs) and a Friedman variation.
These variations appear and reappear in connection with the various orientations of the central banks I considered, namely, in the order of their evolution, the Bank of England, the Federal Reserve, and the Deutsche Bundesbank. Some introductory, theoretically connected distinctions between them appear in Chapter 2, although the three appear and reappear throughout the book.