The poverty of monetarism

Abstract

This paper provides a critical discussion of monetarism and the difficulties of understanding macroeconomic developments after the publication of Friedman and Schwartz’s classic 1965 article through a monetarist lens, especially for the period following the great financial crisis. This paper proposes three research directions for broadening the classical monetarist framework and provides new foundations for monetary economics.

Keywords

• E42
• E58
• F333