and scholars working within the monetary disequilibrium framework find themselves in agreement on the theoretical desirability of an NGDP target.
In general, Monetarists
have taken comfort in the Knightian view that the structure of capital, particularly the inter-temporal structure, can be safely ignored, and that theories in the Austrian tradition, which make use of such concepts as "roundaboutness" and "stages of production," are especially misguided.
In fact, let's leave the Monetarists
in the mix and talk about the shortcomings in all three positions.
Until the 2008 crisis, the Keynesians and monetarists
were unconcerned about asset bubbles.
Textbook writers and even many self-identified monetarists
have taken this short-run/long-run Phillips curve analysis to be the monetarists
' account of the market mechanisms that cause a money-induced boom to go bust.
Perhaps economics departments are reorienting themselves after the Great Recession in a way similar to how they reoriented themselves in a monetarist
direction after the inflation of the 1970's.
tend to assume that some excess balances spill over directly in to commodity markets while Keneysians tend to assume that all excess balances spill over in to financial markets.
To compete with the New Keynesian framework as the benchmark for policymakers, the New Monetarists
must develop quantitative theoretic versions of their models that can be used to answer policy questions.
and Keynesians--especially the latter--come in many flavors.
, he says, were "too focused on aggregates like 'the' price level, which led economists to ignore the way inflation could distort individual prices at the microeconomic level, causing resource misallocation in the process.
Even social democracy, which, particularly in Scandinavia, was an excellent regulator of capitalism, found itself muted in the controversy between Keynesians and monetarists
, and, throughout the developed world, the monetarists
Friedman (1983: 4) noted that while he favored a constant money growth rate, some monetarists
favored a different rule for monetary growth.
are impressed by what they regard as the conclusive evidence of history which indicates that all inflations of moderate duration are caused by increases in the size of the money stock .
Mr Wood-Smith worries that our balance of payments are in "a mess" and money supply growth "is at a level that has the old monetarists
gasping for the gin".
Maurice was much more impressed by the new contributions of the rational expectations school than he was of those by the more traditional monetarists