Now that we are saying good-bye to another monetarist at the Fed in the form of Ben Bernanke, let's take a look at the record of employment during the period of Ben Bernanke's tenure as Fed Chairman:
This FRED graph starts at March 2006 which was when the last monetarist left and Bernanke took over and goes until present.
Let's call it even after almost 8 years Ben.
Not one job net created under the Bernanke tenure; even though for looks like the last 80% of his tenure, his Fed was maintaining a ZERO interest rate policy.
I post this chart not to chastise Ben Bernanke for not fomenting an increase in employment, but rather to point out the complete LACK of efficacy of so-called "monetary policy" to increase employment in any rationally perceived way.
Monetarism is a dangerous and false dogma that most in the world are caught up in.
2 comments:
give us a good definition of monetarism, Matt
give us a good definition of monetarism
Used to mean the cb applying QTM, assuming exogenous money and loanable funds, to influence price through quantity.
Since the demise of QTM as monetary policy, it means preference for using monetary policy by rate (price) setting over fiscal policy. In this sense, virtually all conventional economists are monetarists, including Krugman (other than in a "liquidity trap").
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