Tag Archives: monetary economics

Check your expectations (3) Milton Friedman not going far enough

Milton Friedman’s 1967 Presidential Address (pdf) is something monetary economists regularly say anyone interested in monetary economics should read. Having recently read it, I have come to the conclusion that it is something anyone interested in monetary economics should read. As is normal with Friedman, it is beautifully clear, one his great attributes. His analysis holds […]

Value and ambit

ADDENDA: I have added in three extra paragraphs, because I came to realise a key part of the argument, and a key relevant distinction, was missing. ADDENDA II: My thinking on these issues is a work in progress, and I would put the transaction utility point somewhat differently now. As economist Frank Mehrling has observed (pdf): […]

Response to Dr Horwitz’s thoughts

Dr Horwitz’s thoughtful and generous response to my original post is useful in clarifying what a serious Austrian school economist thinks and correcting some of my misapprehensions. It seems to have been a useful exercise, to provide reactions to Austrian commentary from someone much more familiar with mainstream economics. Even better, I now have something I […]

Easy Guide to Monetary Policy

What money is We use money to transact and the money we use is fiat money, money backed only by government decree. In economic terms, money is a transaction good and all that fiat money is, is a transaction good; the only point in holding such money is to be able to engage in transactions—its expected swap […]