196 Sentences With "monetarist" | Random Sentence Generator

This "monetarist" approach was pursued by Paul Volcker, appointed to head the Fed in 1979.

"It's like two economies, or two worlds—the Marxist and the monetarist," says Ms Capriles.

The point is that the monetarist idea no longer serves any useful purpose, intellectually or politically.

In his writings, the legendary monetarist had pinned the Great Depression on policy failures of the American central bank.

As a monetarist, he thinks the explanation for recessions lies in an excess demand for money, the medium of exchange.

The influential University of Chicago monetarist railed against suggestions that businesses in a free-enterprise system should assume social responsibilities.

Macroeconomics is difficult to teach partly because its theorists (classical, Keynesian, monetarist, New Classical and New Keynesian, among others) disagree about so much.

Is the role of the company, as the monetarist Milton Friedman argued decades ago, solely to produce profit, and pay dividends, to shareholders?

In the 1980s, President Ronald Reagan launched the first Gold Commission, headed by monetarist Anna Schwartz, who eventually came out against the endeavor with her colleague Milton Friedman.

A half-century ago, St. Louis officials publicly stumped for the monetarist theories of Milton Friedman and were criticized for clashing with the Fed leadership of the day.

Monetarist true believers would say this: Stop destabilizing the economy with activist policies because you don't know where the economy is at the time you make a policy change.

In 1963 Milton Friedman and Anna Schwartz published their "Monetary History of the United States", which resurrected the pre-Depression "monetarist" view that monetary stability can mend all macroeconomic ills.

The monetarist disciples of Milton Friedman argued that inflation was "always and everywhere a monetary phenomenon", reflective of changes in the money supply that could be managed by the central bank.

No mention of her so-called (at the time decried) "monetarist" switch to what has become today the conventional wisdom of controlling inflation through money supply and interest rates rather than fiscal policy.

While those conclusions mask the highs and lows of the intervening period, they are testament to the durability and adaptability of a system many - including Nobel laureate and U.S. monetarist Milton Friedman - felt was too rigid to get past its first full-blown recession.

The benefits of the New Deal and the years of government-aided, post-war growth had been met with malaise in the 1970s, providing fertile ground for the merger of market/monetarist economics with the dog-whistle politics of the then, so-called, "silent majority," whose offspring we are well acquainted with in the polity of today.

With the strong revival of monetarist economics since then, he has attracted further scholarly attention.

By contrast, Friedman represented the monetarist perspective. Together with Henry Wallich, their 1967 columns earned the magazine a Gerald Loeb Special Award in 1968.

Another monetarist prediction not borne out in practice was that the velocity of money did not remain constant, in fact it dropped sharply. The US Federal Reserve began increasing the money supply above monetarist-advised thresholds with no effect on inflation, and discarded monetarism in 1984.Though the fed did not officially acknowledge they were unable to adhere to money supply targets until 1987 Bateman(2010) p.19 The Bank of England likewise abandoned its sterling M3 money targeting in October 1985.

Years of sluggish economic performance in the United States had compelled a review of the strategies of the Federal Reserve Board. Later in 2011, Krugman publicly endorsed market monetarist policy recommendations, suggesting "a Fed regime shift" to "expectations-based monetary policy," and commending market monetarism for its focus on nominal GDP. Krugman used the term "market monetarism" in his widely read blog. Also, in the fourth quarter of 2011, The Milken Institute released a study by Clark Johnson, advocating market monetarist approaches.

It isn't part of any well known monetarist or Keynesian theory. So if it does no good to raise our taxes, I assume we are being punished. But for what? I don't own slaves.

Margaret Thatcher became Prime Minister of the United Kingdom in 1979, ushering in a broad range of supply-side reforms and monetarist macroeconomic policies. Jones contends that "the key early battle for the Conservative government had been driving through a tough slew of measures to bring the deficit under control and create the conditions for economic recovery in the famous budget of 1981". The government combined budget cuts with a "reorientation of the tax system to provide greater incentives for entrepreneurship". Monetarist policy had first been introduced by the Callaghan Labour government, which had instituted monetary targets and cash limits.

By 1979, it was not only the Thatcherites who were arguing for stricter control of inflation. The Labour Chancellor Denis Healey had already adopted some monetarist policies, such as reducing public spending and selling off the government's shares in BP. Moreover, it has been argued that the Thatcherites were not strictly monetarist in practice. A common theme centres on the Medium Term Financial Strategy, issued in the 1980 budget, which consisted of targets for reducing the growth of the money supply in the following years. After overshooting many of these targets, the Thatcher government revised the targets upwards in 1982.

Young was born in Los Angeles, California and attended Occidental College (A.B., 1910), which his father helped to establish. He conducted attended Princeton University's Department of Economics (A.M., 1911; Ph.D., 1914) where he studied under monetarist economists, Frank Fetter and Edwin Kemmerer.

Joseph's close friend and ally, Margaret Thatcher, put herself forward as the free market candidate in the subsequent leadership election and won a surprising victory. Jay met with Thatcher at a dinner where he explained to her the monetarist theories that she would subsequently adopt.

According to Copeland, when you look at the economy from the micro perspective of money flows, it provides a powerful new way making phenomena visible that are simply abstracted away by the orthodox Keynesian and Monetarist models. Copeland’s flow of funds set of accounts provides an alternative framework and analytical insights that is unavailable from either the Keynesian NIPA framework or the monetarist quantity theory of money framework. Copeland is recognized as an early Post Keynesian, presenting the view that ‘the changes Keynes introduced represented modifications of neoclassicism, not its rejection’. For his innovations in money flow theory, many colleagues believed that Copeland should have received the Nobel Prize.

In 1983, boundary changes moved Tapsell to East Lindsey, which he represented until 1997 when further boundary changes moved him to Louth and Horncastle. Tapsell was knighted in 1985. Tapsell was a long-time supporter of Keynesian economics, and opposed the monetarist policies of Margaret Thatcher's governments.

Morgenthau wrote in his diary: In 1934, when William H. Woodin resigned because of poor health, Roosevelt appointed Morgenthau Secretary of the Treasury; even conservatives approved.John Morton Blum, From the Morgenthau Diaries: Years of Crisis, 1928–1938. Vol. 1 (1959) p 74. Morgenthau was a strict monetarist.

We're very > sorry. But thanks to you, we won't do it again.Ben Bernanke (November 8, > 2002), FederalReserve.gov: Conference to Honor Milton Friedman, University > of Chicago Monetarist economists used the work of Friedman and Schwartz to justify their positions for using monetary policy as the critical economic stabilizer.

Monetarist policy was continued under the Thatcher government. Jones places "the major differences, and the real departure in economic terms, between the Callaghan government and the Conservatives lay in their radicalization of microeconomic policy through various market-based supply-side reforms and their importation of market mechanisms into public service provision".

Major newspapers, including the Daily Telegraph, The Times, and The Financial Times all promulgated Friedman's monetarist ideas to British decision-makers. Friedman's ideas strongly influenced Thatcher and her allies when she became Prime Minister in 1979.Subroto Roy & John Clarke, eds. (2005), Margaret Thatcher's Revolution: How it Happened and What it Meant. Continuum.

"Clark Warburton and the Development of Monetarism since the Great Depression," History of Political Economy, 11(3),p. 425 and reviver of classic monetary-disequilibrium theory and the quantity theory of money.Michael D. Bordo and Anna J. Schwartz, 1979. "Clark Warburton: Pioneer Monetarist," Journal of Monetary Economics, 5(1), pp. 43–65.

In 1981 Sherman brought the Swiss monetarist Jurg Niehans over to Britain to advise on economic management. Niehans wrote a report critical of the government's economic management that was crucial in influencing the change of policy in the 1981 budget; this tightened the government's fiscal stance to make possible a looser monetary policy.

The recession lessened monetarism's popularity but clearly demonstrated the importance of money supply in the economy. Monetarism became less credible when once-stable money velocity defied monetarist predictions and began to move erratically in the United States during the early 1980s. Monetarist methods of single-equation models and non-statistical analysis of plotted data also lost out to the simultaneous-equation modeling favored by Keynesians. Monetarism's policies and method of analysis lost influence among central bankers and academics, but its core tenets of the long-run neutrality of money (increases in money supply cannot have long-term effects on real variables, such as output) and use of monetary policy for stabilization became a part of the macroeconomic mainstream even among Keynesians.

The Cambridge equation first appeared in print in 1917 in Pigou's "Value of Money".Keynes contributed to the theory with his 1923 Tract on Monetary Reform. The Cambridge version of the quantity theory led to both Keynes's attack on the quantity theory and the Monetarist revival of the theory.Froyen, Richard T. Macroeconomics: Theories and Policies.

Due to the resulting knowledge of the French financing sector his later career in German financial politics was welcomed in France and seen as a support of the Franco-German twin engine. His education has been characterized as specialising in monetarist economics.Traynor, I, 'Jens Weidmann – the man with the key to Mario Draghi's handcuffs', Guardian, 1 August 2012.

UTIP is also noted for replacing the established Gini coefficient with the Theil index as the measurement of choice for comparing inequality between groups, regions and countries. In March 2008 Galbraith used the 25th Annual Milton Friedman Distinguished Lecture to launch a sweeping attack on the Washington Consensus on free market policies, especially the monetarist version. He argued strongly that Keynesian economics offered a solution to the financial crisis that started in 2007 whereas monetarist policies would deepen the recession. Towards the end of 2008 and into 2009 many policymakers around the world increased government spending and/or cut taxes, arguably in line with Galbraith’s views, as part of the Keynesian resurgence described by the Financial Times as "a stunning reversal of the orthodoxy of the past several decades".

This is a systemic condition which no amount of regulation and Keynesian/monetarist stimuli can effectively address. Even desirable piercing of speculative, employment and debt bubbles has ceased to be politically correct. Even 100% taxation of all incomes would not alleviate US debt. So, the US is at the transforming cusp and hundreds of years of sector evolution comes to a halt.

Professor Constantin Kasongo Munganga is a politician and monetarist from the Democratic Republic of Congo. He holds a Ph.D. in economics. In 2011, he was elected MP for the constituency of Katanda Territory, in the Kasai-Oriental province. He is the former Chief Executive Officer of the Center for Expertise, Evaluation, and Certification of Precious and Semi-Precious Mineral Substances, CEEC in short.

Much of new classical research was conducted at the University of Chicago. "New classical economics" evolved from monetarism and presented other challenges to Keynesianism. Early new classicals considered themselves monetarists, but the new classical school evolved. New classicals abandoned the monetarist belief that monetary policy could systematically impact the economy, and eventually embraced real business cycle models that ignored monetary factors entirely.

Money velocity had been stable and grew consistently until around 1980 (green). After 1980 (blue), money velocity became erratic and the monetarist assumption of stable money velocity was called into question. Monetarism attracted the attention of policy makers in the late-1970s and 1980s. Friedman and Phelps's version of the Phillips curve performed better during stagflation and gave monetarism a boost in credibility.

Blanchard (2011), 582–83. Friedman also challenged the Phillips curve relationship between inflation and unemployment. Friedman and Edmund Phelps (who was not a monetarist) proposed an "augmented" version of the Phillips curve that excluded the possibility of a stable, long-run tradeoff between inflation and unemployment. When the oil shocks of the 1970s created a high unemployment and high inflation, Friedman and Phelps were vindicated.

It is based in Westminster, London, England. Founded by businessman and battery farming pioneer Antony Fisher in 1955, it promotes monetarist economics. The IEA is more accurately described as a lobbying operation than as a think tank due to its reluctance to disclose its sources of funding. It publishes a magazine (Economic Affairs), a student magazine (EA), books and discussion papers, and holds regular lectures.

Jones is a Republican. He has described himself as an "eclectic monetarist." In 1977 he identified inflation as the primary threat to prosperity and argued against the existence of a tradeoff between inflation and unemployment. In 1984 as Under Secretary of Commerce for Economic Affairs he favored lower federal spending, a consumption tax, reducing income tax exemptions rather than increasing marginal income tax rates, and combating inflation.

The Phillips curve appeared to reflect a clear, inverse relationship between inflation and output. The curve broke down in the 1970s as economies suffered simultaneous economic stagnation and inflation known as stagflation. The empirical implosion of the Phillips curve followed attacks mounted on theoretical grounds by Friedman and Edmund Phelps. Phelps, although not a monetarist, argued that only unexpected inflation or deflation impacted employment.

By January 1991, nine months after the plan began, it had climbed back to 20% a month. The failure of the Plano Color I in controlling inflation is credited by both Keynesian and monetarist economists to the Collor government's failure to control the re-monetization of the economy.Bresser-Pereira, Luiz Carlos. O Plano Collor e a Volta da Inflação . Indicadores Econômicos FEE, 18 (2): 55-61.

Bradford DeLong denied in a blog post that 'Mr Keynes and the Classics' was based on the General Theory at all, viewing it instead as combining "the monetarist theories of Irving Fisher, the financial-market insights of Knut Wicksell, and the multiplier insights of Richard Kahn into one package".Mr. Hicks and "Mr Keynes and the 'Classics': A Suggested Interpretation": A Suggested Interpretation (2010).

During the 1960s and 1970s, widely accepted Keynesian theory was under vigorous attack from Milton Friedman and other monetarists. Intermediate textbooks at that time were heavily Keynesian, although a few were written from the monetarist (classical) viewpoint. Each side often presented the opposing view as a straw man, to ease its demolition. In his intermediate macroeconomics text, which first appeared in 1974,Paul Wonnacott, Macroeconomics.

The Great Depression in the U.S. from a monetary view. Real gross domestic product in 1996-Dollar (blue), price index (red), money supply M2 (green) and number of banks (grey). All data adjusted to 1929 = 100%. Crowd at New York's American Union Bank during a bank run early in the Great Depression The monetarist explanation was given by American economists Milton Friedman and Anna J. Schwartz.

The New Classical school emerged in the 1970s as a response to the failure of Keynesian economics to explain stagflation. New Classical and monetarist criticisms led by Robert Lucas, Jr. and Milton Friedman respectively forced the rethinking of Keynesian economics. In particular, Lucas made the Lucas critique that cast doubt on the Keynesian model. This strengthened the case for macro models to be based on microeconomics.

Cannon & Beschloss (2001), p. 128. He reappointed Paul Volcker as Chairman of the Federal Reserve, and in 1987 he appointed monetarist Alan Greenspan to succeed him. Reagan ended the price controls on domestic oil that had contributed to the energy crises of 1973–74 and the summer of 1979. The price of oil subsequently dropped, and there were no fuel shortages like those in the 1970s.

This hierarchy is self-serving, profits are no longer the prime motivator, and even managers are not in control. Because they are the new planners, corporations detest risk, require steady economic and stable markets. They recruit governments to serve their interests with fiscal and monetary policy, for instance adhering to monetarist policies which enrich money-lenders in the City through increases in interest rates.

Harold Gregg Lewis (May 9, 1914 – January 25, 1992) was an American economist notable for his contributions in labor economics. He was considered a principal member of the monetarist, free-market-oriented Chicago school of economics. A native of Homer, Michigan, Lewis earned his bachelor's degree and Ph.D. from the University of Chicago. He stayed as a faculty member until 1975, when he moved to Duke University.

These questions stem from Quesnay, via Leontief. Like Robert Mundell Nell places himself at the intersection of three theoretical schools: Keynesian, monetarist, and Ricardian. Each camp contributes something of value to economic analysis and policymaking. For Mundell, Keynesians contribute the multiplier effect of federal budgets for stabilization; Monetarists, monetary stability for encouraging growth-promoting investments; and the Ricardians, the importance of free trade and investment flows for maximizing social welfare.

Evans-Pritchard described the school as, "not Keynesian. They are inspired by interwar economists Ralph Hawtrey and Sweden's Gustav Cassel, as well as monetarist guru Milton Friedman." Evans-Pritchard traces the idea of nominal income targeting to Irving Fisher's Depression-era proposal of a "compensated dollar plan." The idea of targeting nominal GDP was first proposed in James Meade (1978), and discussed in the economic literature during the 1980s and 1990s.

The economy was now in recession. Her early tax policy reforms were based on the monetarist theories of Friedman rather than the supply-side economics of Arthur Laffer and Jude Wanniski, which the government of Ronald Reagan espoused. There was a severe recession in the early 1980s, and the Government's economic policy was widely blamed. In January 1982, the inflation rate dropped to single figures and interest rates fell.

Clark Warburton (27 January 1896, near Buffalo, New York – 18 September 1979, Fairfax, Virginia) was an American economist. He was described as the "first monetarist of the post-World War II period,"Thomas F. Cargill, 1981. "A Tribute to Clark Warburton, 1896–1979: Note," Journal of Money, Credit and Banking, 13(1), p. 89. the most uncompromising upholder of a strictly monetary theory of business fluctuations,Thomas F. Cargill, 1979.

The 1981 United Kingdom budget was delivered by Geoffrey Howe, the then Chancellor of the Exchequer, to the House of Commons on 10 March 1981. It was Geoffrey Howe's second budget and the second of the first Thatcher ministry. The budget represented a strongly monetarist response to the stagflation and high government borrowing which the UK was suffering at the time. The budget speech lasted for 91 minutes.

The Great Contraction is economist Milton Friedman's term for the recessionary period from 1929 until 1933, i.e., the early years of the Great Depression. The phrase was the title of a chapter in the landmark 1963 book A Monetary History of the United States by Friedman and his fellow monetarist Anna Schwartz. The chapter was later published as a stand-alone book titled The Great Contraction, 1929–1933 in 1965.

Though their theory had been proposed by the Keynesian economist Abba Lerner several years before , it was the work of Milton Friedman, leader of the monetarist school of economics, and Edmund Phelps that ended the popularity of this concept of full employment. In 1968, Friedman posited the theory that full employment rate of unemployment was ‘’’unique’’’ at any given time. He called it the "natural" rate of unemployment.

The rise of Monetarism, particularly in the 1970s and via the work of Milton Friedman, is considered the next major change in mainstream economic theory and practice, and has at times been described as the "monetarist revolution".The "monetarist revolution" in monetary theory, Karl Brunner, Review of World Economics (Weltwirtschaftliches Archiv), 1970, vol. 105, issue 1, pages 1–30 The stagflation of the 1970s led to a loss of influence by classical Keynesian economics, and continuing tensions between Keynesian economics and neoclassical economics led in the 1970s to the division between New Keynesian economics and New classical macroeconomics; these are also referred to as the saltwater school and freshwater school, due to the American universities with which they are associated. In development economics, this period is referred to as the Washington Consensus period, and the economic expansion of the 1980s, 1990s, and early 2000s has been referred to as The Great Moderation.

He was appointed to the Executive of the 1922 Committee in 1967, later becoming Secretary of the 1922 Committee and Chairman of the Conservative backbench Committee on Europe. Colin Welch described him as "the ablest Tory never to have been a minister". Andrew Roth's Parliamentary Profiles (1987–1991) describes him as "Widely respected, well-connected, principled Rightwing, monetarist City gent; a hard-headed long term thinker; a devout believer in sanctity of tight money" and as saying "I was not only one of the first in this House to be a monetarist...I confidently expect to be about the last." Ahead of the high inflation of the mid-1970s, he attacked (with some prescience) the Bank of England in 1970 for insufficient monetary restraint and (while Chairman of the Finance Committee) both publicly opposed Chancellor Anthony Barber's over-expansion of monetary supply in April 1971 and attacked the Heath Government's "absurd" proposals for a statutory prices and incomes policy.

The Federal Reserve System (also known as "the Fed") has faced various criticisms since it was authorized in 1913. Nobel laureate economist Milton Friedman and his fellow monetarist Anna Schwartz criticized the Fed's response to the Wall Street Crash of 1929 arguing that it greatly exacerbated the Great Depression. More recent prominent critics include former Congressman Ron Paul. Surveys of economists show overwhelming opposition to abolishing the Federal Reserve or undermining its independence.

The Conservative Party was elected to office in 1979, on a programme of fiscal austerity. Initially, the pound rocketed, moving above US$2.40, as interest rates rose in response to the monetarist policy of targeting money supply. The high exchange rate was widely blamed for the deep recession of 1981. Sterling fell sharply after 1980; at its lowest, the pound stood at just $1.03 in March 1985, before rising to $1.70 in December 1989.

Margaret Thatcher gained power in 1979 and began 18 years of Conservative government. Victory in the Falklands War (1982) and the government's strong opposition to trade unions helped lead the Conservative Party to another three terms in government. Thatcher initially pursued monetarist policies and went on to privatise many of Britain's nationalised companies such as British Telecom, British Gas Corporation, British Airways and British Steel Corporation. She kept the National Health Service.

With the rise of monetarist ideas, the focus in fighting deflation was put on expanding demand by lowering interest rates (i.e., reducing the "cost" of money). This view has received a setback in light of the failure of accommodative policies in both Japan and the US to spur demand after stock market shocks in the early 1990s and in 2000–02, respectively. Austrian economists worry about the inflationary impact of monetary policies on asset prices.

Inflation and the growth of money supply (M2) Monetarists believe the most significant factor influencing inflation or deflation is how fast the money supply grows or shrinks. They consider fiscal policy, or government spending and taxation, as ineffective in controlling inflation. The monetarist economist Milton Friedman famously stated, "Inflation is always and everywhere a monetary phenomenon." Monetarists assert that the empirical study of monetary history shows that inflation has always been a monetary phenomenon.

In 1979, the election of Margaret Thatcher as prime minister brought monetarism to British economic policy. In the US, the Federal Reserve under Paul Volcker adopted similar policies of monetary tightening in order to control inflation. In the world of practical policy-making as opposed to economics as an academic discipline, the monetarist experiments in both the US and the UK in the early 1980s were the pinnacle of anti-Keynesian and the rise of perfect competition influence.

Alemann co-founded the Argentine Association of Political Economy in 1957. The group prioritized dealing with structural inflation over the monetarist approach favored by more conservative policy- makers, such as Economy Minister Álvaro Alsogaray, who was appointed to the post in 1959 without President Arturo Frondizi's support.Clarín: 100 años de auges y crisis económicas Frondizi, a proponent of developmentalism, opposed Alsogaray's austerity program, which brought down inflation, though at the cost of a severe recession in 1959.

Prior to 20th-century monetarist theory, the 19th- century economist and philosopher Frédéric Bastiat expressed the idea that trade deficits actually were a manifestation of profit, rather than a loss. He proposed as an example to suppose that he, a Frenchman, exported French wine and imported British coal, turning a profit. He supposed he was in France and sent a cask of wine which was worth 50 francs to England. The customhouse would record an export of 50 francs.

Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply have major influences on national output in the short run and on price levels over longer periods. Monetarists assert that the objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary monetary policy.Phillip Cagan, 1987.

The authors show how effects of animal spirits refutes the monetarist theory that there is a natural rate of employment which it is not desirable to exceed. Chapter 10 is about why people don't consider the future rationally in their decisions about savings. Chapter 11 presents an explanation for why asset prices and investment flows are so volatile. Chapter 12 discusses why real estate markets go through cycles, with periods of often rapid price increase interspaced by falls.

Powell was staunchly anti- interventionist in economic and monetary affairs. He believed that business interests should be looked after by the people that best understood thembusinessmennot politicians. Having criticised conventions on business practice organised or funded by the government, he was the first major politician to call for de-nationalision of public services in the 1960s. However, while Powell was very much a monetarist, he also defended the welfare state, the National Health Service, and labour unions.

These reforms, sometimes known as "Rogernomics", involved monetarist approaches to controlling inflation, corporatisation of government departments, and the removal of tariffs and subsidies. All these things were strongly opposed by many traditional Labour supporters, who saw them as a betrayal of the party's left-wing principles. Many commentators believed that public anger over Rogernomics could cost the government the election. Another matter of importance, and perhaps one which enabled Labour to survive public dissatisfaction, was the nuclear issue.

Thatcherism is associated with the economic theory of monetarism, notably put forward by Friedrich Hayek's The Constitution of Liberty which Thatcher had banged on a table while saying "this is what we believe". In contrast to previous government policy, monetarism placed a priority on controlling inflation over controlling unemployment. According to monetarist theory, inflation is the result of there being too much money in the economy. It was claimed that the government should seek to control the money supply to control inflation.

A focus on class, urban areas, and industry fails to address Canada's rural and resource-based economy. Similarly, the monetarist school that is dominant in the United States also has been difficult to transfer north of the border. Instead, the study of economic history in Canada is highly focused on economic geography, and for many years the dominant school of thought has been the staples thesis. This school of thought bases the study of the Canadian economy on the study of natural resources.

LSR was founded in 1989 by Tim Congdon, a British economist specializing in the monetarist approach to macroeconomic policy. He was soon joined by Brian Reading. Charles Dumas joined the firm in 1998, to take over the international forecasting service, and became Chief Economist in 2005. Since 1989 Lombard Street Research has stated as its aim to provide global investors with independent, provocative economic analysis and investment advice that challenges the consensus. LSR’s forecasting methodology combines Keynesian and monetary economics.

RBC dismissed the need to explain business cycles with price surprise, market failure, price stickiness, uncertainty, and instability. Instead, Kydland and Prescott built parsimonious models that explained business cycles with changes in technology and productivity. Employment levels changed because these technological and productivity changes altered the desire of people to work. RBC rejected the idea of high involuntary unemployment in recessions and not only dismissed the idea that money could stabilize the economy but also the monetarist idea that money could destabilize it.

The Chicago School of economics is best known for its free market advocacy and monetarist ideas. According to Milton Friedman and monetarists, market economies are inherently stable if the money supply does not greatly expand or contract. Ben Bernanke, former Chairman of the Federal Reserve, is among the economists today generally accepting Friedman's analysis of the causes of the Great Depression. Milton Friedman effectively took many of the basic principles set forth by Adam Smith and the classical economists and modernized them.

Reagan's administration is the only one not to have raised the minimum wage by its conclusion. Along with these, Reagan reappointed Paul Volcker as Chairman of the Federal Reserve, as well as the monetarist Alan Greenspan to succeed him in 1987. He preserved the core New Deal safeguards, such as the United States Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), the GI Bill and Social Security, while rolling back what he viewed as the excesses of 1960s and 1970s liberal policies.

Mises Daily author listing, Ludwig von Mises Institute He was a Professor Emeritus at both Auburn University and the University of Virginia. His monetary writings have strongly opposed Keynesian orthodoxy and have emphasized the crucial role of money in business cycles. His 1956 essay, "A Cash-Balance Interpretation of Depression" maintained that depression was caused by "an excess demand for money, in the sense that people want to hold more money than exists." In this, he was a member of the monetarist school exemplified by Milton Friedman.

In 1979, Peters and Arthur Donner wrote a book titled The Monetarist Counter-revolution: A Critique of Canadian Monetary Policy, 1975-1979. Douglas Peters and David Wilfrid Peters authored an article titled "Reforming Canada's Financial Services Sector: What Needs to Follow from Bill C8", that appeared in the December 2001 issue of the Canadian Public Policy journal. According to author Linda McQuaig, Peters took a Keynesian economic prescription to government, and decided to leave politics when he found that his views were largely ignored.

The St. Louis Fed's research division, led by executive vice president Christopher J. Waller, produces economic research for a wide range of national and international audiences. In the 1960s, the St. Louis Fed garnered a reputation as a maverick in the Federal Reserve System because of its espousal of monetarism. Spurred by bank president Darryl Francis and research director Homer Jones, the bank's economists published research showing a direct relationship between the growth of money and inflation. Monetarist theories have since been adopted widely.

Others within the party maintained that Clark's outreach and moderate policy decisions were aloof from the party's grassroots, which had begun to embrace neoliberal and monetarist reforms that were being pursued in the United Kingdom and United States. At the party's national convention in Winnipeg in January 1983, the chief issue was again Clark's leadership. The issue mobilized supporters and detractors of Clark to a degree not usually seen at biennial conventions. At the convention 66.9% of the delegates voted against, and 33.1% voted for leadership review.

Right- libertarians also disagree with classical liberals as being too supportive of central banks and monetarist policies. Like libertarians of all varieties, right-libertarians refer to themselves simply as libertarians. Being the most common type of libertarianism in the United States, right-libertarianism has become the most common referent of libertarianism there since the late 20th century while historically and elsewhereBookchin, Murray (January 1986). "The Greening of Politics: Toward a New Kind of Political Practice". Green Perspectives: Newsletter of the Green Program Project (1).

Monetarist economists in particular have been opponents of the use of discretionary policy. According to Milton Friedman, the dynamics of change associated with the passage of time presents a timing problem for public policy. The reason this poses a problem is because a long and variable time lag exists between: # the need for action and the recognition of that need; # the recognition of a problem and the design and implementation of a policy response; and # the implementation of the policy and the effect of the policy.Friedman, Milton.

While representatives of the left-wing of the Social Democratic Party opposed reduction of the state expenditures, the FDP began proposing a monetarist economic policy. In February 1982, Schmidt won a motion of confidence; however on 17 September 1982, the coalition broke apart, with the four FDP ministers leaving his cabinet. Schmidt continued to lead a minority government composed only of SPD members, while the FDP negotiated a coalition with the CDU/CSU. During this time, Schmidt also headed the Ministry of Foreign Affairs.

This view goes beyond the monetarist view that monetary variables cause fluctuations and the Keynesian view that supply is stable while demand fluctuates. Older Keynesian models measured output gaps as the difference between measured output and an ever-growing trend of output capacity. Real business cycle theory did not consider the possibility of gaps and used changes in efficient output, caused by shocks to the economy, to explain fluctuations in output. Keynesians rejected this theory and argued that changes in efficient output were not large enough to explain wider swings in the economy.

Under Margaret Thatcher's government, the taming of inflation displaced high employment as the primary policy objective. As a monetarist, Thatcher started out in her economic policy by increasing interest rates to slow the growth of the money supply and thus lower inflation. She had a preference for indirect taxation over taxes on income, and value-added tax (VAT) was raised sharply to 15%, with a resultant actual short-term rise in inflation. The fiscal and monetary squeeze, combined with the North Sea oil effect, appreciated the real exchange rate.

Market monetarists maintain a nominal income target is the optimal monetary policy. Market monetarists are skeptical that interest rates or monetary aggregates are good indicators for monetary policy and hence look to markets to indicate demand for money. Echoing Milton Friedman, in the market monetarist view, low interest rates are indicators of past monetary tightness not current easing, and as such, are not an indicator of current monetary policy. Regarding monetary aggregates, they believe velocity is too volatile for a simple growth in base money to adequately accommodate market demand for money.

Thatcher set about controlling inflation with monetarist policies and changing trade union legislation in an attempt to reduce the strikes of public-sector workers. Thatcher's battle against inflation raised the exchange rate, resulting in the closure of many factories, shipyards and coal pits because imports were cheaper. Inflation fell below 10% by the turn of 1982, having peaked at 22% in 1980, and by spring 1983, it had fallen to a 15-year low of 4%. Strikes were also at their lowest level since the early 1950s, and wage growth rose to 3.8% by 1983.

Regarding the Price Revolution, Law says: > The Spainiards bring as great Quantities into Europe as they can get wrought > out of the MinesJohn Law, Monetarist or Keynesian? Thus, he says, the value of metal currency has been diluted. Remarkable in his work is the assertion that money is not something invented by government authority, which was the popular view of government authorities at the time. But he cedes, as was probably legally required of him, that government (the King) owns all money, as he owns all roads and land.

Determination of income according to the General Theory Keynes viewed the money supply as one of the main determinants of the state of the real economy. The significance he attributed to it is one of the innovative features of his work, and was influential on the politically hostile monetarist school. Money supply comes into play through the liquidity preference function, which is the demand function that corresponds to money supply. It specifies the amount of money people will seek to hold according to the state of the economy.

Przegląd is a left-wing publication, and is considered to be connected with two Polish left-wing political parties, the Democratic Left Alliance and Labour Union. It has been critical of the policies of all post- communist governments, and is opposed to the monetarist policies that were instituted by Polish economist and finance minister Leszek Balcerowicz. The magazine was a vocal opponent of Poland's military presence in Iraq, and remains a persistent critic of the role that the Catholic Church plays in the social and political life of Poland.

7 taking up one-and-a-half tons of the party's paper ration, distributed as election propaganda. The historian Dr. Christopher Cooper traced the formation of the monetarist economics at the heart of Thatcherism back to the resignation of Conservative Chancellor of the Exchequer Peter Thorneycroft in 1958. As early as 1950, Thatcher accepted the consensus of the day about the welfare state, claiming the credit belonged to the Conservatives in a speech to the Conservative Association annual general meeting. Biographer Charles Moore states: Historian Richard Vinen is sceptical about there being Thatcherism before Thatcher.

The committee's practice of interest rate targeting has been criticized by some commentators who argue that it may risk an inflationary bias. Possible alternative rules that enjoy some support among economists include the traditional monetarist formula of targeting stable growth in an appropriately chosen monetary aggregate, and inflation targeting, now practiced by many central banks. Under inflationary pressure in 1979, the Fed temporarily abandoned interest rate targeting in favor of targeting non- borrowed reserves. It concluded, however, that this approach led to increased volatility in interest rates and monetary growth, and reversed itself in 1982.

From 1989 to 1995, he served on the Congressional Budget Office Panel of Economic Advisors. In addition, he has been an adviser and consultant to the Federal Reserve Bank of Boston, a visiting scholar at the Federal Reserve Bank of San Francisco, and a visiting economist at the Reserve Bank of Australia. Poole has engaged in a wide range of professional activities, including publishing numerous papers in professional journals. He has published two books, Money and the Economy: A Monetarist View, in 1978, and Principles of Economics, in 1991.

The most notable feature of New Zealand politics at the time was the economic change promoted by the Finance Minister, Roger Douglas. Douglas was advancing monetarist policies involving extensive privatisation of state assets and the removal of tariffs and subsidies—these reforms were named "Rogernomics". These policies, which contravened Labour's basic policy platform and campaign promises, were deeply unpopular with Labour's traditional support base, and resulted in a confrontation between Prime Minister David Lange and Roger Douglas. Lange also reneged from his promise to hold a binding referendum on the MMP system.

By the mid-1970s monetarism had become the new orthodoxy in macroeconomics, and by the late-1970s central banks in the United Kingdom and United States had largely adopted a monetarist policy of targeting money supply instead of interest rates when setting policy. However, targeting monetary aggregates proved difficult for central banks because of measurement difficulties. Monetarism faced a major test when Paul Volcker took over the Federal Reserve Chairmanship in 1979. Volcker tightened the money supply and brought inflation down, creating a severe recession in the process.

Perhaps unusually, in light of the Social Credit Party's general social conservatism, he declined to give an opinion and said that the issue should be decided by women alone.David Johnston, "On the fringe of Canadian politics, truth is stranger than fiction," Montreal Gazette, 18 September 1989, p. 6. In the same election, Poulin said that social credit monetarist policies could not be implemented in Canada at the provincial level; he promised to instead target unemployment if elected.Michèle Ouimet, "Revoici le crédit social," La Presse, 24 August 1989, B3.

Wanniski has been credited with coining the term supply-side economics to distinguish it against the more dominant "demand-side" Keynesian and monetarist theories. But he told a friend that the actual phrase should be credited to Herbert Stein, for Stein's phrase "supply-side fiscalists." The rising GOP star Jack Kemp became a supply-side economics advocate due to Wanniski's tutelage, and would work to put his proposals into legislative practice. The Way the World Works was named one of the 100 most influential books of the 20th century by National Review magazine.

Henry Calvert Simons (1899–1946) did his graduate work at the University of Chicago but did not submit his final dissertation to receive a degree. In fact, he was initially influenced by Frank Knight while he was an assistant professor at the University of Iowa from 1925-1927, and in summer 1927 Simons decided to join the Department of Economics at the University of Chicago (earlier than Knight did). He was a long-term member in the Chicago economics department, most notable for his antitrust and monetarist models.

Russian president Vladimir Putin being interviewed by the Financial Times in 2019 The FT advocates free markets and is in favour of globalisation, as well as globalist policies. During the 1980s it supported Margaret Thatcher and Ronald Reagan's monetarist policies. It has supported the UK Labour Party in the past, including at the general election in 1992 when Neil Kinnock was Labour leader. The FT's editorials tend to be pro-European, supporting the European Union (including Britain's membership thereof) in the context of a common economic market and opposing political integration.

The election of Margaret Thatcher in 1979 marked the end of the post-war consensus and a new approach to economic policy, including privatisation and deregulation, reform of industrial relations, and tax changes. Competition policy was emphasised instead of industrial policy; consequent deindustrialisation and structural unemployment was more or less accepted. Thatcher's battles with the unions culminated in the Miners' Strike of 1984. The Government applied monetarist policies to reduce inflation, and reduced public spending. Deflationary measures were implemented against the backdrop of the recession of 1980/81.

With regard to innovation, in work co-authored with Rémi Barré and Robert Bayer, Amable makes the case for a richer perspective on innovation systems than the one provided by Keynesian, monetarist or Schumpeterian theories of innovation, as these fail to adequately account for the key roles of organization types, institutions, labour supply and attitudes and their mediation by globalization, claiming that mixed economies outperform both command and free market ones in terms of innovation and competitiveness.[Amable, B., Barré, R., Boyer, R. (1997). Les systèmes d'innovation à l'ère de la globalisation. Paris: Economica.

Thatcher placed special advisers in key economic posts, including Hoskyns and Strauss at the Number 10 Policy Unit, to push forward monetarist policy, deal with the Press, liaise with MPs, write speeches, and think laterally about policy alternatives. A revolt in Thatcher's Cabinet, primarily against Howe's budgets, prompted a reshuffle to oust opponents bringing along loyalists such as Cecil Parkinson and Norman Tebbit but her leadership seemed in doubt. However her personal popularity in the party's grass-roots and radical economic policies were given a boost by the successful Falklands War and an improving economy.

The election of the Conservatives in 1979 had also seen the implementation by the Thatcher government of monetarist economic policies which were designed to tackle inflation, which had peaked at 27% just before the election, dropped merely to 22% in 1980 and was still above 10% by 1981. In 1979, the second oil price crisis started. Although inflation was falling by 1981, unemployment was still rising and the recession was now in its second year. By April 1981, unemployment exceeded 2.5 million, having stood at 1.5 million two years earlier.

Despite his professed monetarist beliefs, Olszewski pushed for a package of reforms to loosen credit, ease earlier anti-inflation policies, reintroduce price supports for a number of agricultural products, and release more subsidies to the state sector of the Polish economy. Included in his industrial interventionist policy, the premier also proposed the unification of the nation's economic ministries to coordinate ongoing privatizations, as well as for all industrial and trade policies.Cannon, p. 151 When put to a vote, however, the deeply fragmented Sejm rejected Olszewski's reform packages, due to objections that the proposals were overly domineering or were too weak.

Along with market monetarist economist Scott Sumner, White has also noted that the monetary policy norm that Hayek prescribed, first in Prices and Production (1931) and as late as the 1970s, was the stabilization of nominal income. Hayek's ideas find their way into the discussion of the post-Great Recession issues of secular stagnation. Monetary policy and mounting regulation are argued to have undermined the innovative forces of the market economies. Quantitative easing following the financial crises is argued to have not only conserved structural distortions in the economy, leading to a fall in trend-growth.

Aggregate supply/demand graph The AD–AS or aggregate demand–aggregate supply model is a macroeconomic model that explains price level and output through the relationship of aggregate demand and aggregate supply. It is based on the theory of John Maynard Keynes presented in his work The General Theory of Employment, Interest and Money. It is one of the primary simplified representations in the modern field of macroeconomics, and is used by a broad array of economists, from libertarian, monetarist supporters of laissez-faire, such as Milton Friedman, to post-Keynesian supporters of economic interventionism, such as Joan Robinson.

In monetary economics, the quantity theory of money (QTM) states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply. The theory was originally formulated by Polish mathematician Nicolaus Copernicus in 1517, and was influentially restated by philosophers John Locke, David Hume, Jean Bodin, and by economists Milton Friedman and Anna Schwartz in A Monetary History of the United States published in 1963. The theory was challenged by Keynesian economics,Minsky, Hyman P. John Maynard Keynes, McGraw-Hill. 2008. p.2. but updated and reinvigorated by the monetarist school of economics.

The term "market monetarism" was coined by Danish economist Lars Christensen in August 2011, and was quickly adopted by prominent economists who advocated a nominal income target for monetary policy. Scott Sumner, a Bentley University economist and one of the most vocal advocates of a nominal income target, adopted the label of market monetarist in September 2011. Sumner has been described as the "eminence grise" of market monetarism. In addition to Scott Sumner, Lars Christensen attributes economists Nick Rowe, David Beckworth, Joshua Hendrickson, Bill Woolsey and Robert Hetzel to be "instrumental in forming the views of Market Monetarism".

At the 1979 general election, he was returned as Member of Parliament for Chippenham in Wiltshire. He was one of the "Wiltshire Wets", Conservative MPs from the county who expressed concern at the perceived loss of jobs resulting from the "monetarist" policies of Margaret Thatcher; in 1990 he called Thatcher "a cow" in a leaked telephone conversation with his wife. His constituency was abolished for the 1983 general election, when he was returned to the House of Commons for the new North Wiltshire constituency. He held the seat until he retired from Parliament at the 1997 general election.

Bruce Jesson, "The New Rights Network of Power" in To Build a Nation: Collected Writings 1975–1999, edited Andrew Sharp, Penguin Press: 2005, p. 190. The reforms can be summarised as the dismantling of the Australasian orthodoxy of state development that had existed for the previous 90 years, and its replacement by the Anglo-American neo-classical model based on the monetarist policies of Milton Friedman and the Chicago School. The financial market was deregulated and controls on foreign exchange removed. Subsidies to many industries, notably agriculture, were removed or significantly reduced, as was tariff protection.

Market monetarists are skeptical of traditional monetarism's use of monetary aggregates as policy variables and prefer to use forward-looking markets.Market Monetarism: The Second Monetarist Counter Revolution They advocate a nominal income target as a monetary policy rule because it simultaneously addresses prices and growth.Why a NGDP (Nominal Gross Domestic Product) Level Target Trumps a Price Level Target Proponents contend that national income targeting would reduce positive and negative fluctuations in economic growth. In recovery from a recession, market monetarists believe concerns over inflation are unjustified and policy should instead focus on returning the economy to a normal growth path.

The NF opposed foreign ownership of British industry, arguing that North Sea Oil production should only be in the hands of British companies. Its policies were protectionist and monetarist, advocating the state control of banking and financial services, and calling for a state bank to provide interest free loans to fund the construction of municipal housing. These economic views were common across Britain's far-right, for instance being akin to those of Oswald Mosley and his BUF. Its opposition to unrestricted free markets led various Conservatives to regard it as a socialist party, a classification not endorsed by academic observers.

Set in post-Soviet Russia the image of materialistic approach to life is especially successful because Soviet attachment to things, stemming from the constant lack of material goods during the seventy year Soviet period, is incomparable to any other. Therefore, when Pelevin captured the stage of initial "making up for things amassment" the effect turned out to be particularly powerful. The most successful image in the book is the exhibition of monetarist minimalism – an exposition of certificates issued by various auctions and art dealers confirming the price paid for this or another work of art. – Drug abuse as a signifier of status.

The policies were instituted by all governments (both Labour and Conservative) in the post-war period. The consensus has been held to characterise British politics until the economic crises of the 1970s (see Secondary banking crisis of 1973–1975) which led to the end of the post-war economic boom and the rise of monetarist economics. The roots of his economics, however, stem from critique of the economics of the interwar period depression. Keynes' style of economics encouraged a more active role of the government in order to "manage overall demand so that there was a balance between demand and output".

The Meidner Plan aimed to collectivize capital formation in two generations by having the wage earner funds own predominant stakes in Swedish corporations on behalf of workers. This proposal was supported by Palme and the Social Democratic party leadership, but it did not garner enough support upon Palme's assassination and was defeated by the conservatives in the 1991 Swedish general election. Upon returning to power in 1982, the Social Democratic party inherited a slowing economy resulting from the end of the post-war boom. The Social Democrats adopted monetarist and neoliberal policies, deregulating the banking industry and liberalizing currency in the 1980s.

Thatcher's economic policy was influenced by monetarist thinking and economists such as Milton Friedman and Alan Walters. Together with her first Chancellor, Geoffrey Howe, she lowered direct taxes on income and increased indirect taxes. She increased interest rates to slow the growth of the money supply and thereby lower inflation, introduced cash limits on public spending, and reduced expenditure on social services such as education and housing. Cuts to higher education led to Thatcher being the first Oxford- educated, post-war incumbent without an honorary doctorate from Oxford University, after a 738–319 vote of the governing assembly and a student petition.

Austrian economist F. A. Hayek (1899–1992) in 1944 galvanized opponents of the New Deal by arguing that the left in Britain was leading that nation down the "road to serfdom".Bruce J. Caldwell, Hayek's Challenge: An Intellectual Biography of F.A. Hayek (2005) p. 297 More influential was the Chicago school of economics, led by Milton Friedman (1912–2006) and George J. Stigler (1911–1991), who advocated neoclassical and monetarist public policy. The Chicago School provided a vigorous criticism of regulation, on the grounds that it led to control of the regulations by the regulated industries themselves.

For the Anglo-American economies, Keynesian economics typically was not officially rejected until the late 1970s or early 1980s. Formal rejection was generally preceded by several years of the adoption of monetarist policies aiming to reduce inflation, which tended to counteract any expansionary fiscal policies that continued to be employed until Keynesianism was formally discarded. In Britain Keynesian economics was officially rejected by Margaret Thatcher's new government in 1979, ending the Post-war consensus. There had been initial unsuccessful attempts to establish free market favouring policies as early as 1970 by the government of Edward Heath.

He was elected to Parliament for the Manawatu seat for the National Party in 1990, winning the seat from Labour. But he was dissatisfied with the monetarist policy of Ruth Richardson, known as Ruthanasia, which the fourth National Government was following. In 1992 MacIntyre and fellow dissident National MP Gilbert Myles and member Frank Grover formed the New Zealand Liberal Party, which soon joined the Alliance, as the new Liberal Party with two first-term MPs was having organisational difficulties. MacIntyre stayed with the Liberal Party within the (left-wing) Alliance, though Myles then joined New Zealand First.

Campion won the seat of Wanganui from Labour in 1990; the seat had been held by Russell Marshall, who was retiring. Once in Parliament, Campion quickly became associated with Michael Laws, Hamish MacIntyre and Gilbert Myles in objecting to the monetarist policy of Ruth Richardson, known as Ruthanasia, which the fourth National Government was following. When Myles and MacIntyre founded the breakaway Liberal Party Campion was widely tipped to follow them into the new party. Campion said that he had not yet given up on National and was still "flat out" trying to change National's policy direction.

Monetary disequilibrium theory is a product of the monetarist school and is mainly represented in the works of Leland Yeager and Austrian macroeconomics. The basic concepts of monetary equilibrium and disequilibrium were, however, defined in terms of an individual's demand for cash balance by Mises (1912) in his Theory of Money and Credit. Monetary disequilibrium is one of three theories of macroeconomic fluctuations which accord an important role to money, the others being the Austrian theory of the business cycle and one based on rational expectations.Leland B. Yeager,The Significance of Monetary Disequilibrium, pp. 369-420.

The policies were instituted by all governments (both Labour and Conservative) in the post-war period. The consensus has been held to characterise British politics until the economic crises of the 1970s (see Secondary banking crisis of 1973–1975) which led to the end of the post-war economic boom and the rise of monetarist economics. The roots of his economics, however, stem from critique of the economics of the interwar period depression. Keynes' style of economics encouraged a more active role of the government in order to "manage overall demand so that there was a balance between demand and output".

The monetarist explanation of inflation operates through the Quantity Theory of Money, MV = PT where M is the money supply, V is the velocity of circulation, P is the price level and T is total transactions or output. As monetarists assume that V and T are determined, in the long run, by real variables, such as the productive capacity of the economy, there is a direct relationship between the growth of the money supply and inflation. The mechanisms by which excess money might be translated into inflation are examined below. Individuals can also spend their excess money balances directly on goods and services.

Donald L. Huddle : Essays on the Economy of Brazil : the Berkeley Group, in : Economic Development and Cultural Change, Vol. 20, no 3 April 1972 In 1972 he was awarded the Fernand Collin Prize for Law by the University Foundation of Belgium In 1976 he published together with Geoffrey Maynard A World of Inflation . In this book, they distanced themselves from the dominant monetarist school, and drew attention to structural factors in explaining differences in inflation rates between countries.Helmut Frisch : Inflation Theory 1963-79 : A Second Generation Survey, Journal of Economic Literature, Vol 15, no 4, december 1977, pp.

Bernard Michael Gilroy attended Roselle Park Elementary School in New Jersey, USA from 1961 to 1970 before attending Roselle Park High School until 1974. Gilroy earned his B.A. (with honors) studying “Multinational Corporate Studies/German Translation Program” from 1974 to 1978 at Upsala College in New Jersey, USA. He participated in the “Rutgers University Junior Year Abroad Program” as an exchange student and studied at the University of Konstanz, Germany from 1976 to 1977. In 1977, Gilroy started studying economics at the University of Konstanz, where he earned his diploma (Master's Degree) with the thesis “Stability Optimism and its Importance in Monetarist Theory”.

Federal Reserve Board's semiannual Monetary Policy Report to the Congress Roundtable Introductory statement by Jean-Claude Trichet on July 1, 2004 The question of whether the short-term effects last long enough to be important is the central topic of debate between monetarist and Keynesian economists. In monetarism prices and wages adjust quickly enough to make other factors merely marginal behavior on a general trend-line. In the Keynesian view, prices and wages adjust at different rates, and these differences have enough effects on real output to be "long term" in the view of people in an economy.

Milton Friedman – Abolish The Fed . Youtube: "There in no institution in the US that has such a high public standing and such a poor record of performance" "It's done more harm than good"Milton Friedman – Abolish The Fed . Youtube: "I have long been in favor of abolishing it." He was opposed to Federal Reserve policies, even during the so-called 'Volcker shock' that was labeled 'monetarist'.Reichart Alexandre & Abdelkader Slifi (2016). The Influence of Monetarism on Federal Reserve Policy during the 1980s. Cahiers d'économie Politique/Papers in Political Economy, (1), pp. 107–50 Friedman believed that the Federal Reserve System should ultimately be replaced with a computer program.

Friedman argued that governments and central banks, rather than focusing on employment, should focus on ensuring a constant and predictable level of monetary growth. Jones describes monetarism as "the most consistent, systematic, and significant alternative economic strategy to Keynesian demand management and fine-tuning". This, according to Jones, primed neoliberal theory for political acceptance in the United States and United Kingdom, who would experience persistent stagflation during the 1970s. Jones sums it up as such: "Friedman's monetarist analysis and market solutions grabbed people's attention as a ready-made and plausible alternative strategy [to Keynesianism] when the economy began to unravel [in the 1970s] under the weight of stagflation".

Friedman notes the similarities between his views and those of Keynes when he wrote... Friedman notes that Keynes shifted the focus away from the quantity of money (Fisher's M and Keynes' n) and put the focus on price and output. Friedman writes... The Monetarist counter-position was that contrary to Keynes, velocity was not a passive function of the quantity of money but it can be an independent variable. Friedman wrote: Thus while Marx, Keynes, and Friedman all accepted the Quantity Theory, they each placed different emphasis as to which variable was the driver in changing prices. Marx emphasized production, Keynes income and demand, and Friedman the quantity of money.

During Reagan's 1980 presidential campaign, the key economic concern was double digit inflation, which Reagan described as "[t]oo many dollars chasing too few goods", but rather than the usual dose of tight money, recession and layoffs, with their consequent loss of production and wealth, he promised a gradual and painless way to fight inflation by "producing our way out of it".Case & Fair, pp. 781–2. Switching from an earlier monetarist policy, Federal Reserve chair Paul Volcker began a policy of tighter monetary policies such as lower money supply growth to break the inflationary psychology and squeeze inflationary expectations out of the economic system.Malabre, Jr., pp. 170–1.

Chapter 4 presents evidence that, in contrast to monetarist theory, many people are at least partially under the money illusion, the tendency for people to ignore the effects of inflation. Workers for example will forgo a pay rise even when prices are rising, if they know that their firm is facing challenging conditions—but they are much less willing to accept a pay cut even when prices are falling. Chapter 5 is about the importance of stories in determining behaviour. Such as the repeatedly told story that house prices will always rise, which caused many additional people to invest in housing following the dot com bust of 2000.

He wears a white construction helmet, when campaigning, and calls himself "The Engineer". The colour of his helmet is said to not only refer to the white construction helmets worn by engineers and architects on construction sites, but also to the berets blanc (white berets), the nickname of the Pilgrims of Saint Michael, a radical monetarist faction within the Quebec social credit movement. Turmel's grandfather, Adelard Turmel, supported the Social Credit Party of Canada from its inception in 1935, and he passed on a belief in social credit monetary theories to his descendants. His brother, Raymond Turmel, has also campaigned for public office on several occasions.

The post-war consensus included a belief in Keynesian economics, a mixed economy with the nationalisation of major industries, the establishment of the National Health Service and the creation of the modern welfare state in Britain. The policies were instituted by all governments (both Labour and Conservative) in the post-war period. The consensus has been held to characterise British politics until the economic crises of the 1970s (see Secondary banking crisis of 1973–1975) which led to the end of the post-war economic boom and the rise of monetarist economics. The roots of his economics, however, stem from critique of the economics of the interwar period depression.

Milton Friedman after examining the history of business cycles in the United States wrote that there "appears to be no systematic connection between the size of an expansion and of the succeeding contraction", and that further analysis could cast doubt on business cycle theories which rely on this premise. Referring to Friedman's discussion of the business cycle, Austrian economist Roger Garrison argued that Friedman's empirical findings are "broadly consistent with both Monetarist and Austrian views" and goes on to argue that although Friedman's model "describes the economy's performance at the highest level of aggregation, Austrian theory offers an insightful account of the market process that might underlie those aggregates".

Blatcherism can be defined as an emphasis on free market policies, support for privatisation or the private ownership of former public services, a monetarist/neo-classical economic policy and a retention of anti- trade union legislation. A convergence of such policies between the Labour and Conservative parties first emerged when Blair became leader of the Labour Party. Blair was elected Leader of the Labour Party in July 1994 following the sudden death of his predecessor, John Smith. Under Blair's leadership, the party abandoned many policies it had held for decades and embraced many of the measures enacted during Thatcher's tenure as Prime Minister, including the Building Societies (deregulation) Act of 1986.

They called for MPs who had acquiesced in Callaghan's policies to be replaced by left-wingers who would support unilateral nuclear disarmament, withdrawal from the European Communities, and widespread nationalisation. Benn did not stand for the leadership; apart from Foot and Healey, the other candidates (both eliminated in the first round) were John Silkin, a Tribunite like Foot, and Peter Shore, a Eurosceptic. When he became leader, Foot was already 67 years old; and frail. After the 1979 energy crisis, Britain went into recession in 1980, which was blamed on the Conservative government's controversial monetarist policy against inflation, which had the effect of increasing unemployment.

Out of office, Maudling accepted the offer of a seat on the board of Kleinwort Benson in November 1964, one of the factors which led to his being shifted to spokesman on Foreign Affairs in early 1965. Unlike other potential leadership contenders, Maudling publicly maintained his loyalty to Douglas-Home as criticisms of his leadership mounted. When Douglas-Home resigned, after putting in place a system in which the leadership was directly elected, Maudling fought against Edward Heath for the position of candidate to the party centre-right. Unfortunately for Maudling, Enoch Powell also stood as a candidate supporting monetarist and proto-Thatcherite economics.

Money supply decreased considerably between Black Tuesday and the Bank Holiday in March 1933 when there were massive bank runs across the United States. Crowd gathering at the intersection of Wall Street and Broad Street after the 1929 crash U.S. industrial production (1928–39) The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the monetarist explanation. There are also various heterodox theories that downplay or reject the explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large- scale loss of confidence led to a sudden reduction in consumption and investment spending.

WK 9. The rise, and absorption into the mainstream of Keynesian economics, which appeared to provide a more coherent policy response to unemployment than unorthodox monetary or trade policies contributed to the decline of interest in these schools. After 1945, the neoclassical synthesis of Keynesian and neoclassical economics resulted in a clearly defined mainstream position based on a division of the field into microeconomics (generally neoclassical but with a newly developed theory of market failure) and macroeconomics (divided between Keynesian and monetarist views on such issues as the role of monetary policy). Austrians and post-Keynesians who dissented from this synthesis emerged as clearly defined heterodox schools.

The Conservative Government decided to abandon the Monetarist project and lowered interest rates in an attempt to create jobs. In fact, by the mid-1980s Mrs Thatcher claimed in a television interview that she had "never subscribed" to the theories of Milton Friedman. The episode ends with many of the economists involved in the ill-fated attempts to manage the economy arriving at the same conclusion their predecessors had 30 years before: they could only prevent an economic disaster, not engineer growth. Other economists point out that other countries' successes had more to do with focusing on improving their education systems and industrial bases rather than large-scale attempts to engineer the entire nation's economy.

Certain groups of people, like Libertarians, believe central banking is an incompetent cartel that does very little to prevent recessions. Milton Friedman for example has claimed the Federal Reserve, which had been founded in 1913, contributed to worsening the Great Depression by artificially keeping interest rates too low and then suddenly shocking the system with outrageously high rates. Although Friedman was a monetarist, he believed decisions regarding interest rates should be left to computers, similar to the way the modern stock market is heavily automated. Individuals who support free banking believe that fiat money should not exist, but that currencies should be freely traded in the economy, and indexing those currencies to precious commodities.

Austrian economist Murray Rothbard, who wrote America's Great Depression (1963), rejected the Monetarist explanation. He criticized Milton Friedman's assertion that the central bank failed to sufficiently increase the supply of money, claiming instead that the Federal Reserve did pursue an inflationary policy when, in 1932, it purchased $1.1 billion of government securities, which raised its total holding to $1.8 billion. Rothbard says that despite the central bank's policies, "total bank reserves only rose by $212 million, while the total money supply fell by $3 billion". The reason for this, he argues, is that the American populace lost faith in the banking system and began hoarding more cash, a factor very much beyond the control of the Central Bank.

In New Zealand, as in Australia, it was the Labour Party that initially adopted "New Right" economic policies. "Rogernomics" involved monetarist approaches to controlling inflation, corporatisation of government departments, and the removal of tariffs and subsidies, while the party also pursued social liberal stances such as decriminalisation of male homosexuality, pay equity for women and adopting a nuclear-free policy. This meant temporary realignment within New Zealand politics, as "New Right" middle-class voters voted Labour at the 1987 New Zealand general election in approval of its economic policies. At first, Labour corporatised many former government departments and state assets, then emulated the Conservative Thatcher administration and privatised them altogether during Labour's second term of office.

It is also, among others, in the title of an article he published on September 2, 1995, in the Nihon Keizai Shinbun (Nikkei).Richard Werner, Keizai Kyoshitsu: Keiki kaifuku, ryoteiki kinyu kanwa kara, Nikkei, 2 September 1995. According to Werner, he used this phrase in order to propose a new form of monetary stimulation policy by the central bank that relied neither on interest rate reductions (which Werner claimed in his Nikkei article would be ineffective) nor on the conventional monetarist policy prescription of expanding the money supply (e.g. through "printing money", expanding high-powered money, expanding bank reserves or boosting deposit aggregates such as M2 –all of which Werner also claimed would be ineffective).

In March 1979, a vote of no confidence issued by Tory opposition leader Margaret Thatcher sparked the collapse of the Labour government and in the election in May that year, the Tories returned to power. In the first year of the Thatcher-led Tory government inflation rose to 15.3%, but then fell to 5% by the time of their election win in 1983. However, the monetarist policies designed to curb inflation caused a recession in 1980 and resulted in a steep rise in unemployment from 5.4% (1,390,46 people) to 11.5% (3,104,66 people). It was not until 2000, by which time Labour had been re- elected as New Labour under Tony Blair that unemployment fell to the level in 1979.

Friedman's k-percent rule is a monetary policy rule that the money supply should be increased by the central bank by a constant percentage rate every year, irrespective of business cycles. In A Monetary History of the United States, 1867–1960, monetarist economists Milton Friedman and Anna Schwartz attributed inflation to excess money supply generated by a central bank. It attributed deflationary spirals to the reverse effect of a failure of a central bank to support the money supply during a liquidity crunch. Friedman proposed a fixed monetary rule, called Friedman's k-percent rule, where the money supply would be calculated by known macroeconomic and financial factors, targeting a specific level or range of inflation.

According to its 1994 constituent declaration, the group is opposed to the present European Union political structure, but it is committed to integration. That declaration sets out three aims for the construction of another European Union, namely the total change of institutions to make them fully democratic, breaking with neo-liberal monetarist policies, and a policy of co-development and equitable cooperation. The group wants to disband the North Atlantic Treaty Organisation (NATO) and strengthen the Organization for Security and Co-operation in Europe (OSCE). The group is ambiguous between reformism and revolution, leaving it up to each party to decide on the manner they deem best suited to achieve these aims.

Shelton entered politics upon his return to London in 1964, becoming that year the president of the Wandsworth Young Conservatives. He was elected to the Greater London Council to represent Wandsworth in 1967, and in 1968 he became the Chief Whip of the Conservative majority on the Inner London Education Authority. Shelton's association with Margaret Thatcher began when she became Shadow Secretary of State for Education and Science in 1967. He soon showed his independence of mind, refusing to participate in the racism directed towards his Labour opponent in the 1970 election, and becoming an early monetarist, a supporter of the European Economic Community as a trade bloc, and an advocate of parental choice in schooling.

Rick Rowden, a Senior Economist at Global Financial Integrity, has criticised the IMF's monetarist approach of prioritising price stability and fiscal restraint, which he alleges was unnecessarily restrictive and prevented developing countries from scaling up long-term investment in public health infrastructure. He argues this resulted in chronically underfunded public health systems and demoralising working conditions, which fueled a brain drain of medical personnel and undermined the fight against HIV/AIDS, as well as public health more generally, in developing countries. Some academics and commentators have blamed neoliberalism and hyper-capitalism for exacerbating and normalizing the social ills and violence of contemporary society, including the increase in mass shootings, particularly in the United States.

Henry Calvert Simons (; October 9, 1899 – June 19, 1946) was an American economist at the University of Chicago. A protégé of Frank Knight, his antitrust and monetarist models influenced the Chicago school of economics. He was a founding author of the Chicago plan for monetary reform that found broad support in the years following the 1930s Depression, which would have abolished the fractional-reserve banking system, which Simons viewed to be inherently unstable. This would have prevented unsecured bank credit from circulating as a "money substitute" in the financial system, and it would be replaced with money created by the government or central bank that would not be subject to bank runs.

Treasury initiatives adopted by the government that were not signalled before the 1984 election included the introduction of a comprehensive tax on consumption (GST), the floating of the dollar (which Douglas opposed until 1984) and the corporatisation of the government's trading activities, announced at the end of 1985. Treasury's view of economic policy was neoclassical and monetarist, and used commercial criteria as the basis for decision-making. Douglas did not concede that his advocacy of these views placed him on the right of the political spectrum. He maintained that the government's social goals were the same as those of the First Labour Government and that changed circumstances required Labour to use different economic means to achieve its ends.

In the above quotation, as well as in other accounts of the main propositions characterizing Monetarism, Karl Brunner systematically mentioned the transmission mechanism of monetary policy first. According to Brunner and Allan Meltzer (1976), a monetarist transmission mechanism is such that “changes in money modify relative prices and initiate a process of substitution that spreads to the markets for existing capital securities, loans and current output” (p. 97). The central role played by relative-price movements led Brunner to use the terms 'transmission process' and 'relative-price process' interchangeably. He actually perceived the transmission mechanism as “a suitable application of relative price theory” to explain output and employment fluctuations (Brunner 1968, p. 18).

In the 1984 general election, Anderton stood successfully as the Labour candidate for Sydenham in Christchurch, becoming a member of the Fourth Labour Government. He soon came into conflict with the party's leadership, and became one of the most outspoken critics of Minister of Finance Roger Douglas. Douglas and his allies, Richard Prebble and David Caygill, were determined to implement radical reforms of the country's economic system, known unofficially as "Rogernomics". This involved a monetarist approach to controlling inflation, the removal of tariffs and subsidies, and the privatisation of state assets, all of which were regarded by Anderton as a betrayal of the party's left-wing roots, and an abandonment of the party's election platform.

The economist Manmohan Singh, the then prime minister of India, spoke strongly in favour of Keynesian fiscal stimulus at the 2008 G-20 Washington summit. The global financial crisis of 2007–08 led to public skepticism about the free market consensus even from some on the economic right. In March 2008, Martin Wolf, chief economics commentator at the Financial Times, announced the death of the dream of global free-market capitalism. In the same month macroeconomist James K. Galbraith used the 25th Annual Milton Friedman Distinguished Lecture to launch a sweeping attack against the consensus for monetarist economics and argued that Keynesian economics were far more relevant for tackling the emerging crises.

Yue Chim Richard Wong, professor of economics at the University of Hong Kong, describes market monetarist economists as "relatively junior in the economics profession and ... concentrated in the teaching universities." The Economist states that Sumner's blog "drew together like-minded economists, many of them at small schools some distance from the centre of the economic universe"; consequently, Christensen considers market monetarism to be the first economic school of thought born in the blogosphere. Although rejecting Milton Friedman's notion of long and variable lags in the effects of monetary policy, market monetarism is typically associated with Friedman's thought, especially with respect to the history of the Great Depression. Ambrose Evans-Pritchard has noted that Christensen, who coined the name "market monetarism," authored a book on Friedman.

Doreen Lawrence, And Still I Rise, Seeking Justice for Stephen, Faber and Faber, 2006, pii7 In 1997, despite being highly opposed to Tony Blair's policies, they called for a vote for the Labour Party with the belief that there would rapidly be a crisis of expectations in Labour, which would lead New Labour voters to question their allegiances, opening up opportunities, space for organisation and activity to the left of Labour that is traditionally occupied by the party when it is in opposition. John Rees wrote in July 1997: "In the mid-term the 'sado-monetarist' strategy followed by the Labour government will clash increasingly sharply with a working class movement which has drawn hope and confidence from its electoral victory over the Tories".

The Baumol–Tobin model is an economic model of the transactions demand for money as developed independently by William Baumol (1952) and James Tobin (1956). The theory relies on the tradeoff between the liquidity provided by holding money (the ability to carry out transactions) and the interest forgone by holding one’s assets in the form of non-interest bearing money. The key variables of the demand for money are then the nominal interest rate, the level of real income that corresponds to the number of desired transactions, and the fixed transaction costs of transferring one’s wealth between liquid money and interest-bearing assets. The model was originally developed to provide microfoundations for aggregate money demand functions commonly used in Keynesian and monetarist macroeconomic models of the time.

From a monetarist perspective, deflation is caused primarily by a reduction in the velocity of money and/or the amount of money supply per person. A historical analysis of money velocity and monetary base shows an inverse correlation: for a given percentage decrease in the monetary base the result is nearly equal percentage increase in money velocity. This is to be expected because monetary base (MB), velocity of base money (VB), price level (P) and real output (Y) are related by definition: MBVB = PY. However, it is important to note that the monetary base is a much narrower definition of money than M2 money supply. Additionally, the velocity of the monetary base is interest rate sensitive, the highest velocity being at the highest interest rates.

The party also failed to master the medium of television, while Foot addressed public meetings around the country, and made some radio broadcasts, in the same manner as Clement Attlee did in 1945. Members joked that they had not expected Foot to allow the slogan "Think positive, Act positive, Vote Labour" on grammatical grounds. The Daily Mirror was the only major newspaper to back Foot and the Labour Party at the 1983 general election, urging its readers to vote Labour and "Stop the waste of our nation, for your job your children and your future" in response to the mass unemployment which followed Conservative Prime Minister Margaret Thatcher's monetarist economic policies to reduce inflation. Most other newspapers urged their readers to vote Conservative.

After a further year in office in these circumstances Lawson felt that public articulation of differences between an exchange-rate monetarist, as he had become, and the views of Walters (who continued to favour a floating exchange rate) were making his job impossible and he resigned.1989: Thatcher beats off leadership rival, BBC News, 5 January 1989 He was succeeded in the office of Chancellor by John Major.John Major Prime Minister's Office Lawson's tenure as Chancellor of the Exchequer was longer than that of any of his predecessors since David Lloyd George, who served from 1908 to 1915.The long and the short of stewardship at No11 The Times, 6 June 2004 This was subsequently passed by Labour's Gordon Brown (1997–2007).

The former Prime Minister, Margaret Thatcher, based many of her defining policies along the lines of Powell's rhetoric. However, while they shared between them a desire for the denationalization of industries, their methods of going about this were considerably different. Thatcher desired to severely limit the power of trade unions by defeating them in open industrial showdowns, most notably with the miners' strike showdown against the NUM, whereas Powell defended labour unions and desired to build unity with the working class by winning over trade unionists to monetarist policies through logic, intelligence and political arguments that were in opposition to socialist arguments. Furthermore, Thatcher's proposals to limit immigration were certainly not to the extent that Powell had proposed in 1968.

Her first major book, The Theory of Monetary Policy (1973), was a critical evaluation of both the Keynesian and monetarist approaches to macroeconomics that were dominant of the time. In 1971 she was present at Joan Robinson's Ely Lecture to the American Economic Association, titled The Second Crisis in Economics, and at the meeting called by Joan Robinson and Paul Davidson which gave conscious expression to what became the Post Keynesian school of thought. At this point Chick returned to The General Theory and wrote a critique of Clower and Leijonhufvud's reappraisal (Leijonhufvud, 1968) of the Economics of Keynes, leading eventually to her magnum opus Macroeconomics After Keynes (1983). In this book she portrayed the Keynesian Revolution as one of method, forced by taking seriously the effects of money, time and uncertainty.

Influenced by Keynes, economics texts in the immediate post-war period put a significant emphasis on balance in trade. For example, the second edition of the popular introductory textbook, An Outline of Money, devoted the last three of its ten chapters to questions of foreign exchange management and in particular the 'problem of balance'. However, in more recent years, since the end of the Bretton Woods system in 1971, with the increasing influence of monetarist schools of thought in the 1980s, and particularly in the face of large sustained trade imbalances, these concerns – and particularly concerns about the destabilising effects of large trade surpluses – have largely disappeared from mainstream economics discourseSee for example, Krugman, P and Wells, R (2006). "Economics", Worth Publishers and Keynes' insights have slipped from view.

At the 1964 general election, he was elected as the Member of Parliament for South Angus where the family seats of Gardyne Castle, Finavon Castle and Middleton all stood. He held the seat until the October 1974 general election, when he lost to Andrew Welsh of the Scottish National Party. Bruce-Gardyne was later elected as the MP for Knutsford at a by-election in 1979, but was effectively forced out of the House of Commons when the seat was abolished by boundary changes for the 1983 general election. He was a monetarist but was opposed to the Falklands War and was an independent-minded MP. His well-known publication, Meriden: Odyssey Of A Lame Duck, virulently attacked Tony Benn's creation of the Meriden Workers' Co-operative to continue production of Triumph Motorcycles.

In 1981, he was asked to become an economic adviser to Prime Minister Margaret Thatcher (who was elected in the 1979 general election), and advised on that year's budget, in which taxes were increased during a recession. This policy produced much criticism and was associated with rioting and high unemployment,Pandora's Box: The League of Gentlemen – Adam Curtis but it has been claimed that it enabled the sustained economic growth of the 1990s. He left this role in 1983 to join the American Enterprise Institute and at least some aspects of monetarist policies were publicly repudiated by Thatcher in 1985. He did, however, return to advise Thatcher in 1989, but his differences with the policies of the Chancellor of the Exchequer, Nigel Lawson, led to the resignation of both men on 26 October 1989.

In Canada the transition was less clearly marked, though Pierre Trudeau had begun to adopt monetarist anti-inflationary measures as early as 1975. Likewise for most of continental Europe except for France, the transition away from Keynesian economics was less distinct, partly as Keynes had not been as important there, since European states had generally pursued Dirigiste measures even before Keynes, never having embraced classical economics in the first place. In France, François Mitterrand came to power in 1981 with a commitment to expansionary Keynesian policy, to help reduce unemployment caused by the worldwide recession underway at the time. Similar to what had happened after Léon Blum's election back in 1936, many of the wealthy moved their money out of France, and by 1983 Mitterrand had been forced to largely abandon Keynesian policy.

The Editor of The Times, William Rees-Mogg, sent Peter Jay to the U.S. as economic correspondent where he learned of the Monetarist theories of Milton Friedman. Enoch Powell became the champion of free market economics in British politics, fighting with Heath, a more centrist politician, for control of the party: he was the second biggest loser from Heath's election win, as it prevented Powell from taking control of the party.Andrew Marr, A history of Modern Britain Heath had attempted to reduce the power of the trade unions but was eventually beaten by the strikers. Following the February 1974 election defeat former Health Minister Keith Joseph turned against Heath and his neo-Keynesian policies to become a champion of free market economics but lost his position and influence after his controversial human stock speech.

Influenced by Keynes, economics texts in the immediate post-war period put a significant emphasis on balance in trade. For example, the second edition of the popular introductory textbook, An Outline of Money, devoted the last three of its ten chapters to questions of foreign exchange management and in particular the "problem of balance". However, in more recent years, since the end of the Bretton Woods system in 1971, with the increasing influence of Monetarist schools of thought in the 1980s, and particularly in the face of large sustained trade imbalances, these concerns – and particularly concerns about the destabilising effects of large trade surpluses – have largely disappeared from mainstream economics discourse and Keynes' insights have slipped from view. They are receiving some attention again in the wake of the financial crisis of 2007–08.

However, on 23 February 1974, with the election only five days away, Powell dramatically turned his back on his party, giving as the reasons that it had taken the United Kingdom into the EEC without having a mandate to do so, and that it had abandoned other manifesto commitments, so that he could no longer support it at the election. The monetarist economist Milton Friedman sent Powell a letter praising him as principled. Powell had arranged for his friend Andrew Alexander to talk to Joe Haines, the press secretary of the Labour leader Harold Wilson, about the timing of Powell's speeches against Heath. Powell had been talking to Wilson irregularly since June 1973 during chance meetings in the gentlemen's lavatories of the "aye" lobby in the House of Commons.

The strong form of monetarism being tested at this time asserted that fiscal policy is of no effect, and that monetary policy should only try to target the money supply to control inflation, without attempting to target real interest rates. This was in contrast to the Keynesian view that monetary policy should target interest rates, which it held could influence unemployment. Monetarism succeeded in bringing down inflation,The high interest rates under Volker have even been credited with causing The Great Moderation but at the cost of unemployment rates in excess of 10%, causing the deepest recession seen in the developed countries since the end of the Great Depression and severe debt crises in the developing world. Contrary to monetarist predictions, the relationship between the money supply and the price level proved unreliable in the short- to medium-term.

The "Thatcher years" were also marked by periods of high unemployment and social unrest, and many critics on the left of the political spectrum fault her economic policies for the unemployment level; many of the areas affected by mass unemployment as well as her monetarist economic policies remained blighted for decades, by such social problems as drug abuse and family breakdown. Unemployment did not fall below its May 1979 level during her tenure, only marginally falling below its April 1979 level in 1990. The long-term effects of her policies on manufacturing remain contentious. Speaking in Scotland in 2009, Thatcher insisted she had no regrets and was right to introduce the "poll tax" and withdraw subsidies from "outdated industries, whose markets were in terminal decline", subsidies that created "the culture of dependency, which had done such damage to Britain".

From 1981 to 1989, Bordo was Professor of Economics at the University of South Carolina before taking on the role of Professor of Economics at Rutgers University. Bordo is currently Professor of Economics and Director of the Center for Monetary and Financial History at Rutgers University, New Brunswick. He held many visiting positions at universities worldwide (including University of California-Los Angeles, Princeton, Harvard, Cambridge and the London School of Economics) as well as central banks and international monetary institutions (including the IMF, Federal Reserve Banks of St. Louis, Cleveland, the Federal Reserve Board of Governors, the Bank of Canada, the Bank of England and the Bank for International Settlements). He is a member of the Shadow Open Market Committee, an independent group of economists, who provide a monetarist alternative to the views on monetary policy.

The independent group of economists meet twice a year to evaluate the policy choices and actions of the Federal Reserve's Open Market Committee. E21 partners with the Shadow Open Market Committee (SOMC), an independent group of economists, first organized in 1973 by Professors Karl Brunner, from the University of Rochester, and Allan Meltzer, from Carnegie Mellon University, to provide a monetarist alternative to the views on monetary policy and its inflation effects then prevailing at the Federal Reserve and within the economics profession. Its original objective was to evaluate the policy choices and actions of the Federal Open Market Committee (FOMC), but has since broadened its scope to cover a wide range of macroeconomic policy issues. With members drawn from academic institutions and private organizations, the committee meets semi-annually and publishes position papers on its website.

The No Turning Back Group at the Institute of Economic Affairs pushed for the privatisation of health and education but Thatcher rejected this idea, instead trying to introduce some free market supplyside reforms into public services. The immensely unpopular Community Charge, which replaced the Rates system with a poll tax, resulted in increasing unpopularity for Thatcher personally and for her party as a whole, leading to her political judgement being questioned. Thatcher's distrust of the European Union led to the resignations of her Chancellor of the Exchequer Nigel Lawson in 1989 and her Deputy Prime Minister Geoffrey Howe in 1990. Lawson's resignation was principally the result of his feeling that Thatcher and her economic adviser, the monetarist Professor Sir Alan Walters were undermining his position as Chancellor, by engaging in economic policy formulation from Number 10 rather than from the Treasury.

After Macmillan's death in 1986 Powell said "Macmillan was a Whig, not a Tory ... he had no use for the Conservative loyalties and affections; they interfered too much with the Whig's true vocation of detecting trends in events and riding them skilfully so as to preserve the privileges, property and interests of his class". However, when Macmillan replaced Eden as Prime Minister, Powell was offered the office of Financial Secretary to the Treasury on 14 January 1957. This office was the Chancellor of the Exchequer's deputy and the most important job outside the Cabinet. In January 1958 he resigned, along with the Chancellor of the Exchequer Peter Thorneycroft and his Treasury colleague Nigel Birch, in protest at government plans for increased expenditure; he was a staunch advocate of disinflation, or, in modern terms, a monetarist, and a believer in market forces.

The Shadow Open Market Committee (SOMC) is an independent group of economists, first organized in 1973 by Professors Karl Brunner, from the University of Rochester, and Allan Meltzer, from Carnegie Mellon University, to provide a monetarist alternative to the views on monetary policy and its inflation effects then prevailing at the Federal Reserve and within the economics profession. At that time, the Fed argued that rising and variable inflation since 1965 was largely attributable to non-monetary forces such as the power of labor unions and oil price shocks, and had little to do with rapid money growth. Based on the principles of monetarism developed earlier by Milton Friedman, the SOMC blamed the Great Inflation squarely on Federal Reserve policies that featured excessive money growth. The SOMC's principal message that persistent inflation is always and everywhere a monetary phenomenon has been widely accepted by central bankers and economists.

Unemployment in the United Kingdom fell later in the 1930s as the Depression eased, and it remained low (in six figures) after World War II. Fredrick Mills found that in the US, 51% of the decline in work hours was due to the fall in production and 49% was from increased productivity. By 1972, unemployment in the United Kingdom had crept back up above 1,000,000, and it was even higher by the end of the decade, with inflation also being high. Although the monetarist economic policies of Margaret Thatcher's Conservative government saw inflation reduced after 1979, unemployment soared in the early 1980s and in 1982, it exceeded 3,000,000, a level that had not not seen for some 50 years. That represented one in eight of the workforce, with unemployment exceeding 20% in some places that had relied on declining industries such as coal mining.

The nation was still feeling the effects of the numerous strikes during the recent Winter of Discontent. Inflation had recently topped 20%, and unemployment was in excess of 1.5 million for the first time since the 1930s. Thatcher's monetarist and deflationary economic policies saw a cut in the inflation rate from a high of 22% in May 1980 to just over 13% by January 1981, and by June 1983 it had fallen to a 15-year low of 4.9%. Decreasing the public sector borrowing requirement as a share of GDP was a part of the medium term financial strategy at the beginning of the first Thatcher ministry. It was brought down from around 5% during the 1978-1979 period to around half of this figure during the 1982-1983 period. Public expenditure as a share of GDP increased at around 1.5% per year during the 1979-1983 period, despite the target being a reduction of 1% per year.

However, dissent and schism were not to be limited to the Labour Party and Alliance Party alone. During the Labour Party's second term in office, the Opposition New Zealand National Party (popularly known as 'National') selected Ruth Richardson as Opposition finance spokesperson, and when National won the 1990 general election, Richardson became Minister of Finance, while Jenny Shipley became Minister of Social Welfare. Richardson introduced deunionisation legislation, known as the Employment Contracts Act, in 1991, while Shipley presided over social welfare benefit cuts, designed to reduce "welfare dependency" – both core New Right policy initiatives. In the early nineties, maverick National Party MP Winston Peters also came to oppose New Right economic policies, and led his elderly voting bloc out of the National Party. As a result, his New Zealand First anti-monetarist party has been a partner in coalition governments led by both National (1996–98) and Labour (2005–08 and 2017-ongoing).

In the early 1960s, contributing to the studies invited by the Commission on Money and Credit, Milton Friedman and David Meiselman published a study whereby, they found that "[e]xcept for the early years of the Great Depression, money is more closely related to consumption than is autonomous expenditures,"The term "autonomous expenditures" denotes the components of an economy's aggregate expenditure that are not affected by that same economy's real level of income. E.g. government spending, basic living expenses, and private investing. See Friedman/Meiselman (1963) claiming moreover that "[t]he results [of the tests] are strikingly one-sided". They used the following reduced form, least squares regression equation to compare the effectiveness of monetary and fiscal policies; in effect, to compare Keynesian and monetarist theories: ::C_t = \alpha + VM_t + KA_t (1) where C is induced private consumption, α is a constant, V represents money velocity, M is approximately M2, K represents an expenditure-multiplier, A is autonomous expenditures, and t represents time.

Numerous papers have appeared in the literature, dating from the 1963 original work until the 2010s. In 2011, Stefan Belliveau attempted to sum up the debate down to three “interpretations”:Belliveau (2011) Real business-cycle theory says that neither fiscal nor monetary policy is very effective, essentially rejecting state activism; Keynesian theory suggests that government expenditures can influence economic output while monetary policy is not as effective; and monetarist theory says that monetary policy is effective while fiscal policy is not. To settle the matter, Belliveau attempted to salvage the Andersen/Jordan equation by including Gross Value Added by Sector as his output-dependent variable, considering it necessary to look at these data if policymakers are attempting to stabilize economic fluctuations. Using annual data from 1956 to 2007, Belliveau found empirical support, as claimed, that both monetary and fiscal policy seem to help stabilize an economy, and considers the use of both policies in the United States as being "reasonable" during and after the Great Recession.

Most of these jobs had been lost in the heavy industry sector, which was in decline, with the government's monetarist policies to tackle inflation also being blamed for the economic downturn and subsequent mass unemployment, which was particularly severe in Scotland, Northern Ireland, the north of England, and in South Wales. The south of England recovered well from the recession, however, enjoying the greatest benefits of thriving financial markets and strong growth in the service sector, while the rapid growth in the computing industry also created many new jobs. Some historians argue that the rise in the unemployment rate during the 1980s was likely higher than reflected in official statistics, due to attempts to manipulate it. Thatcher's government implemented many measures meant to make it harder to claim benefit, and eventually began counting only those actually receiving benefits in unemployment figures, excluding those who had applied for benefits but had not yet begun receiving them, or who had been recognized as unemployed but denied benefit.

Ritchie was first elected in the Capital, to the Wellington City Council in 1977 and then initially served for the next 12 years until 1989 when she resigned as a City councillor. She was elected concurrently to the first Wellington Regional Council in 1980 and resigned from there in 1983. During those 12 years, she was voted the first woman Labour Leader from 1980–86, and was selected as the official Labour candidate for Mayor (the first woman) in 1983, finishing runner-up to Ian Lawrence. As Chair of the Airport Authority from 1980, for 8 years and of all the Airport Authorities in New Zealand for 5 years, she defied Labour Minister Prebble's early attempt at privatisation of public assets - Wellington Airport. His and Douglas's monetarist free market, "Rogernomics" approach of extensive privatisation of state assets, and corporisation of the public sector, which the then Labour government pursued contravened Labour’s basic policy platform.

Retrieved 29 July 2008. In 2009, a book by Rick Rowden titled The Deadly Ideas of Neoliberalism: How the IMF has Undermined Public Health and the Fight Against AIDS, claimed that the IMF's monetarist approach towards prioritising price stability (low inflation) and fiscal restraint (low budget deficits) was unnecessarily restrictive and has prevented developing countries from scaling up long-term investment in public health infrastructure. The book claimed the consequences have been chronically underfunded public health systems, leading to demoralising working conditions that have fuelled a "brain drain" of medical personnel, all of which has undermined public health and the fight against HIV/AIDS in developing countries. In 2016, the IMF's research department published a report titled "Neoliberalism: Oversold?" which, while praising some aspects of the "neoliberal agenda," claims that the organisation has been "overselling" fiscal austerity policies and financial deregulation, which they claim has exacerbated both financial crises and economic inequality around the world.Globalization’s True Believers Are Having Second Thoughts. Time.

With the 1970s energy crisis, the abandonment of both the gold standard and the Bretton Woods system along with Keynesian social- democratic, mixed-economy policies and the implementation of market-oriented, monetarist and neoliberal policies (privatization, deregulation, free trade, economic globalization and anti-inflationary fiscal policy, among others), the social-democratic welfare state was put in doubt. This caused several social- democratic parties to adopt the Third Way, a centrist ideology combining progressivism and social liberalism with neoliberalism. However, the Great Recession in the late 2000s and early 2010s cast doubts to the so-called Washington Consensus and protests against austerity measures ensued, causing a resurgence of social democratic parties and policies, especially in the United States and the United Kingdom with the rise of politicians such as Bernie Sanders and Jeremy Corbyn, who rejected the Third Way, after the economic recession caused the Pasokification of many social-democratic parties. The United Nations World Happiness Report shows that the happiest nations are concentrated in social-democratic nations, especially in Northern Europe, where the Nordic model is applied.

Argentina's many years of military dictatorship (alternating with weak, short- lived democratic governments) had already caused significant economic problems prior to the 2001 crisis, particularly during the self-styled National Reorganization Process in power from 1976 to 1983. A right-wing executive, José Alfredo Martínez de Hoz, was appointed Economy Minister at the outset of the dictatorship, and a neoliberal economic platform centered around anti- labor, monetarist policies of financial liberalization was introduced. Budget deficits jumped to 15% of GDP as the country went into debt for the state takeover of over $15 billion in private debts as well as unfinished projects, higher defense spending, and the Falklands War. By the end of the military government in 1983, the foreign debt had ballooned from $8 billion to $45 billion, interest charges alone exceeded trade surpluses, industrial production had fallen by 20%, real wages had lost 36% of their purchasing power, and unemployment, calculated at 18% (though official figures claimed 5%), was at its highest point since the 1929 Great Depression.

As widely predicted by the opinion polls, Labour lost this election, which was won by the Conservative Party and saw Margaret Thatcher become Prime Minister. The Mirrors continued support of the Labour government was in spite of its falling popularity over the previous few months which had been the result of the Winter of Discontent, where the country was crippled by numerous public sector strikes. By the time of the 1983 general election, Labour support was at a postwar low, partly due to the strong challenge by the recently formed SDP–Liberal Alliance. Despite this, the Daily Mirror remained loyal to Labour and urged its readers to vote for the party (now led by Michael Foot), condemning the Thatcher-led Tory government for its "waste of our nation", condemning the rise in unemployment that Thatcher's Conservative government had seen in its first term in power largely due to monetarist economic policies to reduce inflation, although the government's previously low popularity had dramatically improved since the success of the Falklands conflict a year earlier.

Similarly, cuts to health programs have allowed diseases such as AIDS to devastate some areas' economies by destroying the workforce. A 2009 book by Rick Rowden entitled The Deadly Ideas of Neoliberalism: How the IMF has Undermined Public Health and the Fight Against AIDS claims that the IMF's monetarist approach towards prioritizing price stability (low inflation) and fiscal restraint (low budget deficits) was unnecessarily restrictive and has prevented developing countries from being able to scale up long-term public investment as a percentage of GDP in the underlying public health infrastructure. The book claims the consequences have been chronically underfunded public health systems, leading to dilapidated health infrastructure, inadequate numbers of health personnel, and demoralizing working conditions that have fueled the "push factors" driving the brain drain of nurses migrating from poor countries to rich ones, all of which has undermined public health systems and the fight against HIV/AIDS in developing countries. A counter-argument is that it is illogical to assume that reducing funding to a program automatically reduces its quality.

He argues it is telling that one of the first acts of the Chicago Boys in Chile after the military junta overthrew the Allende government in 1973 was to close down every economics department in the nation outside of the Catholic University, a University of Chicago monetarist stronghold. The junta then closed down every social science department and fired, exiled or murdered critics of its ideology in the terrorist Project Condor program waged throughout Latin America and spread to political assassination in the United States itself. What the Chicago Boys recognized is that free market ideology requires totalitarian control of the school and university system, totalitarian control of the press and control of the police where intellectual resistance survives against the idea that economic planning should become much more centralized, but moved out of the hands of government into those of the bankers and other financial institutions, stating: "Free market ideology ends up as political Doublethink in countering any freedom of thought. Its remarkable success in the United States and elsewhere thus has been achieved largely by excluding the history of economic thought – and of economic history – from the economics curriculum".

Beryl Wayne Sprinkel (November 20, 1923 – August 22, 2009) was a Under Secretary for Monetary Affairs in the US Treasury from January 1981 to April 1985, and member of the Executive Office of the US President and chairman of the Council of Economic Advisers (CEA) between April 4, 1985 and January 21, 1989, during the Reagan administration. Prior to government service, Dr. Sprinkel worked at the Harris Trust and Savings Bank in Chicago from 1952 to 1981, rising to the position of executive vice president. (source: Obituary Beryl Sprinkel, Reagan Economic Advisor, Dies at 85, New York Times, September 1, 2009) Raised on a farm near Richmond, Missouri, Sprinkel was a member of the 2nd Armored Division, which led the attack that penetrated and defeated the German offensive near Celles, Belgium, in the Battle of the Bulge during World War II. After the war he earned a degree in economics from the University of Missouri and, later, an MBA and PhD from the University of Chicago. At the University of Chicago he one of a circle of economists who were heavily influenced by the monetarist ideas of Milton Friedman, who later won the Nobel Prize in Economics.

Callaghan's time as Prime Minister was dominated by the troubles in running a Government with a minority in the House of Commons: he was forced to make deals with minor parties to survive—including the Lib–Lab pact, and he had been forced to accept a referendum on devolution in Scotland as well as one in Wales (the former went in favour but did not reach the required majority, and the latter went heavily against). He also became prime minister at a time when Britain was suffering from double-digit percentage inflation and rising unemployment. He responded to the economic crises by adopting deflationary policies to reduce inflation, and cutting public expenditure—a precursor to the monetarist economic policies that the next government, a Conservative one led by Margaret Thatcher, would pursue to ease the crises. Despite the economic difficulties faced by the government, over the summer of 1978 (shortly after the end of the Lib-Lab pact)James Callaghan Prime Minister's Office most opinion polls showed Labour ahead, and the expectation grew that Callaghan would call an autumn election that would have given him a second term in office until autumn 1983.