Those interested laypersons and members of the general public who are unfamiliar with econometrics will undoubtably find the following passage hard to swallow given the language. Bear with it until the end, and I will translate for you.…
In layperson’s terms, what all of this says is that Milton Friedman and his co-conspirator, Anna Schwartz’s attempt to claim that the velocity of money was constant, was total bullshit.
So, what then does this all mean to you?
Quite frankly, a lot and it is very important information that the public needs to understand.
Therefore, I’m writing a somewhat comprehensive series on income inequality which will begin with a look at post-World War II policies of full employment up to the 1970’s. Next, I will discuss the OPEC cost shock, the Great Inflation, and the rise of Monetarism. From there, I will discuss the end of full employment, union busting, wage suppression to 1992 and the coming of “New Democrats”. I will then finish with a look at private debt expansion.
So, there’s lots to discuss in the coming weeks.Ellis Winningham — MMT and Modern Macroeconomics
New Series on Income Inequality