Hajo Riese has been Professor of Economics at the Freie University Berlin since 1971. He was Vice President of the University from 1973 to 1975 and directed the Institute for Theory of Economic Policy until 2001. In his main field of research, monetary economics, he advised the central banks and governments of many developing countries such as Ecuador, Bolivia and Vietnam. Money, Capital and System Transformation presents a selection of thought-provoking essays by Hajo Riese which have not previously been available in the English language. Riese's fundamental methodological position, formulated with a particular reference to Keynes, provides new insights into major issues of economic development and economic transition. This makes these essays, which were selected by Riese himself, particularly valuable reading. The first two chapters lay the theoretical foundations by explaining how a monetary economy works and the role of monetary policy, with specific reference to Bagehot and Keynes respectively. The implications of Riese's analysis are of the utmost importance for countries in the process of transition towards a capitalist system. Riese demonstrates in the following chapters that strategies of economic development and economic transition will fail if the requirements of a monetary economy are not met.

Editors' Preface
Bibliographical Notes
Introduction; J.Hölscher
Bagehot versus Goodhart: Why a Central Bank Needs Commercial Banks
Keynes as a Capital Theorist
Development Strategy and Economic Theory: Comments on a Neglected Topic
Marx and Keynes in a Theory of the Monetary Economy
The Process of Transformation and Stabilization Policy
Building Blocks of a Macro-theory of Transformation
The Failure of Socialism and the Transformation Process
Bibliography
Index

JENS HÖLSCHER is Senior Lecturer in Economics at the University of Brighton, UK.

HORST TOMANN is Professor of Economics at the Freie University Berlin, Germany.