Recently David Beckworth and Martin Sandbu, among others, have drawn attention to an interesting paper by James Bullard and Riccardo DiCecio unveiled in Norway earlier this year. In it, Bullard and DiCecio investigate a model economy possessing both a large private credit market and "Non-state contingent nominal…
CMFA Director George Selgin recently appeared on David Beckworth’s new podcast series, Macro Musings. Selgin and Beckworth primarily speak about the “productivity norm,” the idea that changes in the price level should mirror changes in productivity. The productivity norm is one version of a monetary policy that…
Few people would, I think, take exception to the claim that, in a well-functioning monetary system, the quantity of money supplied should seldom differ, and should never differ very much, from the quantity demanded. What's controversial isn't that claim itself, but the suggestion that it supplies a…
Although there's no such thing as a straightforward measure of the quantity of money in an economy, monetary policy is nonetheless about managing that quantity. How ought it to be managed? The (misleadingly) simple-sounding answer is: so that it neither falls short of nor exceeds the quantity…