INTERMEDIATE

Monetarism

Popularized by Milton Friedman, monetarism is a school of economics that argues that changes in the money supply are the prime cause of economic instability. In the short run, changes in the money supply are said to be non-neutral. That is such changes affect production output in the short run but become neutral in the long run, causing, ceteris paribus, a rise in the general price level proportional to the increase of money. Monetarists advocate a slow, steady increase of the money supply in order to stabilize aggregate demand.

 

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The Greenspan Fed in Perspective

JUNE 01, 2006 by ROGER W. GARRISON

Some readers of the Wall Street Journal might have been led to believe that Alan Greenspan had somehow followed Milton Friedman's monetary rule. We now see, though, that there was no well-grounded rule; there was no standard.

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Vienna and Chicago: A Tale of Two Schools

It's a Shame the Schools See One Another's Philosophies as Competitive Rather Than Complementary

FEBRUARY 01, 1998 by MARK SKOUSEN

Since its inception, the Foundation for Economic Education has been associated with two free-market schools, the Austrian school of Ludwig von Mises and, to a lesser extent, the Chicago school of Milton Friedman. Mises, after leaving Vienna for New York City, was closely involved with Leonard Read, FEE's founder. He spoke frequently at FEE's headquarters in Irvington-on-Hudson, and wrote regularly for The Freeman.

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Money and Inflation

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December 2014

Unfortunately, educating people about phenomena that are counterintuitive, not-so-easy to remember, and suggest our individual lack of human control (for starters) can seem like an uphill battle in the war of ideas. So we sally forth into a kind of wilderness, an economic fairyland. We are myth busters in a world where people crave myths more than reality. Why do they so readily embrace untruth? Primarily because the immediate costs of doing so are so low and the psychic benefits are so high.
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