Beyond the pro-statist Chartalists and the pro-capitalist Catallactics, Zelmanovitz provides informative sketches of a handful of other influential modes of thought: the sociological theory of money, the property theory of money, the credit theory of money, metallism, and monetarism
. Each approach stresses different aspects of money, whether its status in societal norms, its property designation, its relation to debt, or its supply relative to its demand.
The same fate has befallen monetarism
-- the doctrine that stable growth in the money supply can promote a more stable economy.
We have grown so accustomed, after nearly four decades of monetarism
, to regarding control of the money supply as relevant only to the battle against inflation that we have lost sight of how strongly monetary policy affects growth.
The first is simplistic free market nostrums and the second a legacy of misunderstanding from Chicago School monetarism
that claims exchange rates do not matter because induced depreciation will be offset by inflation.
With Ronal Reagan in the US and Margaret Thatcher in the United Kingdom, Friedman's monetarism
found its political testing ground.
David Stockman not only cites Mises and Hazlitt, among other Austrians, but is also a severe critic of the supposedly free-market Chicago School of monetarism
and its patron saint, Milton Friedman.
: The Second Monetarist Counter-Revolution.
However, the economic chapters reflect arguably the most important political application of neoliberalism of all, that of monetarism
, which had a complicated genesis in both countries.
Then people started questioning the thinking of the great man and came up with ludicrous theories like monetarism
and supply side economics.
This book explores that entire range but focuses on that middle period that saw the rise of monetarism
, transatlantic networks, the neoliberal breakthrough of the 1970s, and rise of Thatcher and Reagan to national politics.
Thatcher's answers to the growing industrial disorder of the 1970s were "monetarism
" to liquidate inflation, legal curbs on trade-union power, and privatization of bloated state-owned industries -- "selling off the family silver" as former Conservative Prime Minister Harold Macmillan called it.
But, her " poll tax", hard- line monetarism
and disagreement over Britain's integration with the EU created unrest not just among the common Briton, but an internal Tory revolt ensured she never returned to Number 10 Downing Street after 1990.
Standing parables on their heads, even if her belief was sincerely held, looked like she was hijacking Christianity to justify the monetarism
ideology that she had unleashed on Scotland.
The first, 'Making Thatcherism', has five essays which look at the 1970s and the new phenomenon's relations with neo-liberalism, monetarism
and inflation, morality and religion, and Enoch Powell's prophetic warnings about massive immigration.
It took the postwar involvement of American thinkers like Milton Friedman to yield a distinct set of neoliberal ideas, defined as "monetarism
, deregulation, and market-based reforms." Unlike his gloomy predecessors, who'd been traumatized by the hideous events in Europe, Friedman saw his career unfold amid patriotic Cold War rhetoric and the unprecedented postwar economic expansion.