Mike Roberts is obviously right that MONETARISM is a crock of shit (and that's an "academic" judgement!) ---
But as with all "zombie economics" they have a way of getting around the factual evidence he mentions -- that the expansion of the money supply during the pandemic had no visible impact on the rate of inflation -- Monetarism says that a chance in the rate of growth of money will --- AFTER AN INDETERMINATE LAG --- create an acceleration of inflation. Friedman even once said the lag could be as long as 18 months --- In other words, if a change in the rate of growth of the money supply DOES NOT produce the predicted result that the monetarists promise the answer is --- well the "lag" is a bit longer this time ... Unbelievable bullshit --- yet it worked for YEARS and the FED even adopted monetarism in 1979 with the result being the disastrous recession of 1982-83 ---- (and in Britain it was even worse!!!) On Sun, May 9, 2021 at 9:25 AM Louis Proyect <[email protected]> wrote: > There is a reason why mainstream economics has been driven into this > ‘subjective’ corner in explaining and forecasting inflation. It’s because > previous mainstream theories of inflation have been proven wrong. The main > theory of the post-war period was the monetarist one, which I have > discussed before > <https://thenextrecession.wordpress.com/2020/08/17/covid-and-inflation/>. > Its basic hypothesis is that price inflation in the ‘real’ economy occurs > and accelerates if the money supply rises much faster than production in an > economy. Inflation is essentially a monetary phenomenon (Milton Friedman) > and is caused by central banks and monetary authorities interfering in the > harmonious expansion of the capitalist economy. > > But the monetarist theory has been proven wrong, particularly during the > COVID slump. During 2020, money supply entering the banking system rose > over 25% and yet consumer price inflation hardly budged and even slowed. > > > https://thenextrecession.wordpress.com/2021/05/09/inflation-and-financial-risk/ > _._,_._,__._,_._,_ > > -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#8439): https://groups.io/g/marxmail/message/8439 Mute This Topic: https://groups.io/mt/82697985/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. #4 Do not exceed five posts a day. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/8674936/21656/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
