tag:blogger.com,1999:blog-2761684730989137546.post6087282781393583658..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: Edward Lambert — Institutionalist Economics did not come up shortmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2761684730989137546.post-52985395619306352532014-03-27T18:39:00.399-04:002014-03-27T18:39:00.399-04:00Nicely said Tom. I'd say the latter type of mo...Nicely said Tom. I'd say the latter type of monetarists are the ones to watch out for. The former, old school, Friedman-rule monetarists are irrelevant.<br /><br />The "endogenous money monetarists" (not a real label but let's call them that for now) believe that the CB "creates" money whenever its policy rate is below the natural rate of interest, wherever that may be according to their model.circuithttps://www.blogger.com/profile/08565443970730261572noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-73139250724077689442014-03-26T16:02:37.408-04:002014-03-26T16:02:37.408-04:00The way I understand it monetarism holds that the ...The way I understand it monetarism holds that the central bank controls the supply of money either exogenously through quantity of reserves and money multiplier, or in an endogenous system through the "supply function" of money, that is set by the policy rate.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-31245023909781848352014-03-26T14:58:14.513-04:002014-03-26T14:58:14.513-04:00"What amazes me is that monetarists think tha..."What amazes me is that monetarists think that the policy rate is the single lever that moves the entire economy, which is neatly depicted in the IS-LM model"<br /><br />I don't think that's what monetarists believe. New Keynesians maybe.yhttps://www.blogger.com/profile/03233997168975370006noreply@blogger.com