Topic: Divisia
Quotes
Posts
Review: Making Money Work
Some years ago, a pair of political compasses circulated around policy Twitter. The milquetoast centrist, on the left, had safe and orthodox opinions represented by points clustered at the center of the compass. The radical centrist, on the right, had opinions arrayed on all edges of the compass. Centrism, it . . .
New Inflation Numbers are a Huge Win for the Quantity Theory
After Covid, inflation in the US – and worldwide – soared to levels not seen since the 1970s. And during that time, we’ve been treated to a steady stream of proclamations that economists were blindsided by it. And as economists argued about supply-side vs demand-side explanations, more off-the-wall theories took the . . .
Finance in a Theory of Money
Orthodox monetary theory is kneecapped by an overly concrete conception of money, which has led in recent decades to a reaction of moneyless models of monetary policy. By contrast, this paper generalizes monetary theory in terms of the plans of economic agents to hold and dispose of liquidity in a . . .
Bubbles and Broad Monetary Aggregates: Toward a Consensus Approach to Business Cycles
A challenge for quantity-theoretic explanations of business cycles is that recessions manifest despite central banks’ scrupulousness to avoid falls in monetary aggregates, a fact which would seem to indicate a structural explanation. This paper argues that a broader and theoretically richer Divisia aggregate – which reflects changes in financial market . . .