ABSTRACT
It is a pleasure to contribute to a volume honoring the work of Leland Yeager. It has long been my belief that Professor Yeager is, perhaps, the most under-appreciated monetary theorist of the twentieth century.1 He has contributed to our understanding of the role of money in advanced economies and to the macroeconomic processes of those economies in ways that reveal profound insights into the oper ation of the market process. His pursuit of “good economics” without significant regard to the winds of intellectual fashion, whether those fashions be methodo logical or ideological, along with his refusal to be pigeon-holed into an allencompassing school of thought by which others could define, and perhaps dismiss, his work, make him an inspiring role model for all who see themselves in similar terms. In the spirit of Yeager’s non-sectarianism, I would like to explore the connections between Yeager’s work in the monetary disequilibrium theory tradition and recent work in Austrian macroeconomics. What I hope to show is that Austrians have much to learn from Yeager and that Yeager’s work is more compatible with Austrian macroeconomics than he has been often willing to admit.2 In finding the common ground between these two bodies of work, I hope to create a common theoretical language through which might emerge a twenty-first century macroeconomics that takes money, the disequilibrium market process, and monetary institutions more seriously.
