1) Other elements of monetarism
included (i) the view that inflation was everywhere and always a monetary phenomenon; (ii) that the Phillips curve was vertical; (iii) the importance of monetary rules, such as Friedman's constant monetary growth rule, instead of discretion; (iv) a critique of fine tuning; and (v) the dominance of monetary over fiscal policy (Friedman, 1960, 1968; Brunner, 1968; and Stein, 1976).
Whether because monetarism
and supply-side economics are sound theories, or because following any theory that isn't crazy is better than furious improvisation, Reagan had better success against the economic problems of the 1980s than Roosevelt did against those of the 1930s.
This Budget was a mixture of the tough monetarism
of Thatcher with the compassion of old Labour.
First, challenges to the consensus were not new and the lexicon of monetarism
had already developed.
One has only to think of the rise of such ideas an monetarism
and privatisation to see how much is due to Right-wing organisations like the Centre for Political Studies (founded 1974 by Sir Keith Joseph) and the Adam Smith Institute (1977).
He argues that monetarists are likely to find quantity-theory precedents for monetarism
in the past, while Keynesians (or non-monetarists) are likely not to find them.
Separate chapters focus on the Bretton Woods system of fixed exchange rates that was in effect from World War II until the early 1970's, the 1960's optimism that macroeconomic policy could tame the business cycle, the confused economic outlook at the end of the 1960's, monetarism
, and supply-side economics.
Second is principal agent analysis and third is monetarism
Here is a tiny sample matching subject and author: Human Capital - Gary Becker; Socialism - Robert Heilbroner; Monetarism
- Allan Meltzer; Monetary Policy - James Tobin; Money Supply - Anna Schwartz; Airlines Alfred Kahn; Monopoly - George Stigler; Trucking Thomas Gale Moore; Balance of Payments - Herbert Stein; Exchange Rates - Paul Krugman; Free Trade Alan Blinder; Protectionism - Jagdish Bhagwati; Disasters - Jack Hirshleiter; Health Insurance - John Goodman; Econometric Models - Saul Hymans; Unemployment - Lawrence Summers; and Profits - Lester Thurow.
As if all this isn't enough to prohibit any future effort to limit or in any way interfere with the outcomes of the free market economy, the new proposal inserts monetarism
right into the constitution.
The Keynesian demand management of the economy and policies of full employment of postwar Britain gave way, under Thatcher, to Monetarism
and the supremacy of the market place.
Somewhat cynically, as Greider shows, Volcker chose monetarism
as his weapon to slay the inflationary dragon.
The profession, having abandoned or denatured Keynes, purged itself of all radical impulses and soon moved sharply to the right, reviving two time-honored fallacies: Say's law of markets and the quantity theory of money, now respectively rechristened supply-side economics and monetarism
As well as broadcasting and lecturing around the world, he has written several books on the economy including The Rise & Fall of Monetarism
, Free Lunch and Mrs Thatcher's Economics.
Instead her doctrine was explicit monetarism
, privatisation through the sale of shares in state-owned industries (which could be bought by anyone) and a belief that there should be a 'homeowning democracy' by the sale of council houses.