Money in the Long Run
Textbook Review
- Blanchard: ch. 4-1, 4-2; 23.
- Mankiw: ch. 4 (including appendix)
Mankiw does a better job of covering the main results that we wish to review this week, but Blanchard will do if that is all that is currently available to you.
Monetarism Today
- J. Bradford DeLong, "The Triumph of Monetarism?" Journal of Economic Perspectives, v. 14, n. 1, Winter 2000, pp. 83–94.
DeLong's (2000) article provides both a summary of the monetarist approach as well as a lead-in into subsequent (New) Keynesian models we will study later in the semester. It provides a useful and short review of the relevant intellectual history.
For a more forceful assertion of the importance of monetarist views in modern monetary economics, particularly as professed by Milton Friedman, see 2003 remarks by Ben Bernanke (former Princeton economics professor and current Federal Reserve Board Governor). (Optional reading.)
The data that we examined in class are reviewed in further detail in the two additional articles listed below. (Optional reading.)
- Remarks by Governor Ben S. Bernanke at the Federal Reserve Bank of Dallas Conference on the Legacy of Milton and Rose Friedman's Free to Choose, Dallas, Texas, October 24, 2003.
- R. W. Hafer, "What Remains of Monetarism?" Federal Reserve Bank of Atlanta Economic Review, Q4 2001, pp. 13–33.
- Terry J. Fitzgerald, "Money Growth and Inflation: How Long is the Long-Run?" Federal Reserve Bank of Cleveland Economic Commentary, August 1, 1999.