Rival Notions of Money
7 Pages Posted: 31 Oct 2012
Date Written: 1988
Abstract
The rise of Milton Friedman’s version of monetarism in the 1960s and early 1970s provoked an antimonetarist backlash culminating in the late Nicholas Kaldor’s The Scourge of Monetarism (1982). Friedman stressed the ideas of exogenous (i.e., central bank determined) money, money-to-price causality, inflation as a monetary phenomenon, and controllability of money through the high-powered monetary base. He traced a chain of causation running from open market operations to bank reserves to the nominal stock of money and thence to aggregate spending, nominal income, and prices.
Suggested Citation: Suggested Citation
Humphrey, Thomas M., Rival Notions of Money (1988). FRB Richmond Economic Review, vol. 74, no. 5, September/October 1988, pp. 3-9, Available at SSRN: https://ssrn.com/abstract=2122448
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.