Modernizing a Classic of Monetary Theory

Dr. Perry Merhling discusses his book, 'The New Lombard Street,' which explores modern money markets and the role of the Federal Reserve during crises. Inspired by Walter Bassett's study of the Bank of England, Merhling updates the concept to focus on the New York and dollar money markets. He aims to bridge practical insights from bankers with academic theories on monetary policy and rational expectations, drawing from Marcia Stigum's work. The book serves as a reference for traders and connects historical and theoretical perspectives on money markets.

What is the significance of Marcia Stigum's work in the context of Dr. Merhling's research?

In what way does Dr. Merhling aim to connect historical and theoretical views of money markets?