Tag Archives: monetarism

Disaggregating the Equation of Exchange

The equation of exchange states that MV=PQ. As formulated by Friedman, the equation is stated as MV=PY. Money times velocity equals the price level times total output Q, or total income Y, or transactions T, which are the same in what might be called a “closed” economy. Let me further explain this simple tautology. All […]

Crash and burn!

Ha. Ha. Ha. Yet another imbecilic and infantile “plan” devised by our holy central planners tears itself a new one; yet another failed synthetic product of a bygone era; an era that never needed said garbage in the first place. Price controls always fail. I speak of our present and absurd monetary central planning: the […]

Circling Down the Drain

Awake – Textures Who would’ve thought that Ol’ Yellen would’ve been the one to take the economy out back and shoot it? I ask this in not a bitchy, simpleton, Krugmanesque manner, but in an Austro-monetarist one. Seven years of All-American ZIRP have thrust the country into an orgy of both consumption and investment: an […]

Cage Match #2: Eurocrats, Nations, and Individuals

Up next, we have the international money, competing with the European federal state, competing with individual European nation-states, competing with European individuals themselves. Ostensibly, Eurocrats (including the ECB) and international banks like the IMF want to work together. Lately, they have been, owing to the fact that Greece looks like a pressure point in the […]

The Perversion of Monetarism

The monetarist school of thought has evolved within this last century and a half from holding “right-wing” Jacobin-styled (neocon/Knightian) egalitarian goals, to then pursing libertarian means, and has since been perverted back to simpleton “conservatism;” inasmuch as “conservatism” means (to your average person) holding the beliefs of mild center-leftism plus hardcore corporatism, which basically just […]

stockman as an austrian friedman

david stockman is a genius. he integrates stock analysis, fiscal policy, capital theory, macro theory, and monetary theory into every conversation you hear with him. stockman is essentially the austrian version of m. friedman: please oh god, don’t let this insanely debt-wrought and volatility-prone government-controlled economy kill us (or the government itself kill us, a […]

The Genius of Roger Garrison, Part Four: Schumpeter and the RBCT

I left off in the last article mentioning a tidbit about the RBCT (Real Business Cycle Theory) and its connection to the ABCT (Austrian Business Cycle Theory). Surely, the “Real” part of RBCT sounds precocious, until you understand that it is merely meant to explicate that the business cycles it attempts to describe are caused […]

The Genius of Roger Garrison, Part Three

I am not in full agreement with Garrison. Nor, am I, in any kind of full agreement with any Austrian, Chicagoan, New-Classicist, or any economist of any school that thinks the market ultimately serves a purpose; meanwhile, I am especially not in agreement with those that think the market is useless or wrongheaded, and even […]

The Genius of Roger Garrison, Part Two

At the end of part one I mentioned Friedman’s fears of deflation, which I said were a natural consequence of his view that depressions stem from the nature of money itself. Friedman basically said that we should keep the nominal interest rate at zero and shoot for consistent and low inflation each year (around 3% […]

The Genius of Roger Garrison (and a Reconciliation with Lachmann and Friedman)

My favorite economist is surely Roger W. Garrison, author of “Austrian Macroeconomics: A Diagrammatical Exposition,” and more importantly, “Time and Money: The Macroeconomics of Capital Structure.” He has also, of course, written a myriad of articles, such as “AS/AD: A Sad Development in Macroeconomic Pedagogy.” Before reading this, one will need to at least understand […]