He is critical of what he sees as the Fed's ongoing monetarism
The breakdown of M1's tight early-1980s relationship with nominal income led Friedman back to M2, but he conjectured that the same break had led critics of monetarism
to overemphasize the extent to which money/income relationships had changed in the 1980s.
Gordon (1983) has described this drop in velocity as the "demise of monetarism
Thatcher and Reagan, with their Freidman-ite monetarism
and new thinking, were extraordinary catalysts for change.
The old heavy industries - coal, steel, shipbuilding - were being sacrificed on the altar to monetarism
In that dark decade, before the enlightenment of monetarism
and the rise of Our Saviour Thatcher, the most powerful man in Britain wasn't the prime minister, but Jack Jones, the leader of the Transport & General Workers Union.
Then there are economists of varying hues including Keynes, Ricardo, Marshall, Friedman with his monetarism
and Kondratiev, who perceived economics in waves influenced by technological change.
He analyzes British monetarism
from the point of view of political economy and compares it to American monetarism
While sharing Mrs Thatcher's belief in monetarism
and Europe, his questioning character and her inflexibility led him to declare that: "I did not come into politics to be a kamikaze pilot.
They take this monetarism
bit pretty seriously, I thought.
But the earlier challenges to macro theory, like monetarism
and rational expectations, have been sifted and synthesized successfully.
Eugene Leonard provides an excellent overview of the basic tenets of Monetarism
, carefully distinguishing between short and long run effects of monetary fluctuations, and Bruce MacLaury effectively utilizes historical examples to demonstrate the Fed's inherently difficult task of acting as an autonomous policymaking body on one hand while maintaining accountability to Congress and the general public on the other.
How did ideas like curbing the power of trade unions, privatizing national industries, de-regulating public transport, introducing charges for medical treatment and ushering in fiscal monetarism
pass from being denounced as mad heresy to being proclaimed as the conventional wisdom?
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.
The British opted for Margaret Thatcher and the near forgotten policy of monetarism