Although New Deal interventions (and other explanations such as Robert Higgs's regime uncertainty) can be used to explain the length of the depression, the monetarist
explanation that rests on the contraction of money supply is needed to clarify why the economy fell so much.
King and Alex Wolman is the first of the modern New Keynesian models that incorporated both monetarist
and Keynesian ideas in a dynamic general equilibrium model with interest rate rules.
I develop the argument as follows: In Section II I briefly summarize NGDP targeting, the Market Monetarist
School, and its similarities to free banking and monetary disequilibrium.
These challenges produced what Milton Friedman (1977) called the monetarist
He was very critical of Margaret Thatcher's monetarist
The primary objective of this paper is quantitative determination of the causal relationships among key instruments of the Czech National Bank's monetary policy, the intermediate criteria of monetary policy, and macroeconomic variables representing real economic performance of the Czech Republic and the domestic price level within monetarist
Volume 2 of Allan Meltzer's monetarist
History of the Federal Reserve notes Bretton Woods "might have continued if price adjustment had occurred promptly in response to domestic policy choices, differences in productivity growth, changes in the extent of capital mobility, and the like.
The moves mark a shift in concern, away from inflation to unemployment, and a turnaround in policy - away from Milton Friedman's monetarist
focus on price stability, circa the 1970s, to John Maynard Keynes' emphasis on employment stability during the Great Depression.
The disastrous monetarist
policies of Thatcher's 80s are back.
Yet what was the monetarist
response to the crisis?
But he was never what Mrs Thatcher termed "one of us", opposing the harshness of her monetarist
economic policies and reportedly coining the nickname "Tina" from the initials of her mantra "There is no alternative".
Beginning with an explanation of why the study of economics is critically important, to such contemporary issues as the 2008 financial collapse leading to the present national and global problems of unemployment and inflation, to Keynesian, monetarist
, and other economic perspectives, to the classic considerations of supply and demand, to labor and capital markets, to the relationship of governmental policies and income distribution, "Economics" presents an informed and informative text that is 'reader friendly' and comprehensive, making it ideal and highly recommended for academic curriculums and community library Economic Studies collections.
The stability of V is no doubt an important component of monetarist
policy prescriptions, but it need not be part of a claim that changes in M and V determine P.
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.
The underlying axiom of monetarist
theory (Friedman, 1986) is that every crisis is triggered by disturbances in the regularity of money supply.