Monetarists on the other are more critical of government borrowing arguing that government borrowing is often due to political pressures.
His most famous article was "A
Monetarist Model for Economic Stabilization," co-authored with Leonall (Andy) Andersen and published in the St.
Thus, analyses based on the behavior of NGDP growth provide a
monetarist cross-check against mainstream Keynesian approaches, like Powell's, organized around die Phillips curve instead.
It discusses the deliberate and the automatic behavior of two economists: one trained in the Keynesian school of economic thought, and the other trained in the
monetarist school of economic thought.
More details on this topic are available from posts on the WEA Pedagogy Blog: 'The Keynesian Revolution, and
Monetarist Counter-Revolution,' and 'Completing the Circle: From GD '29 to GFC 2007'.
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.
This is the reason Piketty captures the spirit of our times (the zeitgeist in German), as Keynes caught it during the New Deal, Hayek during the
monetarist revolution, Stieglitz during the emerging markets crises of global capital flows in the 1990s.
This undergraduate textbook links theory to real world historical, institutional, political, and social factors while still introducing the classical, Keynesian,
monetarist, classical-Keynesian synthesis, new classical, and post-Keynesian approaches to macroeconomics.
The governor also made it clear that he was no hardcore
monetarist and indirectly hit out at the International Monetary Fund, which had suggested that RBI do more on rates.
The rise of the Market
Monetarist School and their policy recommendation that the central bank target the level of nominal GDP draws support from, amongst other sources, the literature on monetary equilibrium theory.
These challenges produced what Milton Friedman (1977) called the
monetarist counter-revolution.
* Venky Venkateswaran, Pennsylvania State University, and Randall Wright, University of Wisconsin, Madison and NBER, "Pledgability and Liquidity: A New
Monetarist Model of Financial and Macroeconomic Activity
He was very critical of Margaret Thatcher's
monetarist policies.
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 approach.
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." President Nixon had either to devalue the dollar versus other currencies or to deflate.
