Sunday, October 11, 2015

Simon Wren-Lewis — One reason why monetary policy is preferred by New Keynesians


The interest rate variable as tool. Does it work the way monetarists assume in affecting the IS-LM model?

Mainly Macro
One reason why monetary policy is preferred by New Keynesians
Simon Wren-Lewis | Professor of Economics, Oxford University

1 comment:

Ralph Musgrave said...

His basic argument seems to be that monetary policy leaves the mix of public and private spending the same, which struck me as an odd and not very persuasive argument. I left a comment there questioning his argument.