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Thread: Bob Murphy: Where Monetarism Goes Wrong

  1. #1

    Default Bob Murphy: Where Monetarism Goes Wrong

    Great discussion and very helpful. I thought Bob Murphy did a great job explaining the differences because I "got" it.

    The tube isn't up yet but you can listen at the link.

    Robert P. Murphy
    Jeff Deist
    The great Austrian economist Friedrich Hayek celebrated a birthday earlier this week, while the prominent monetarist (and Fed historian) Allan Meltzer passed away the same day. Joining us to discuss monetarism is our friend Bob Murphy, who lays out the central tenets of the Chicago school and its godfather Milton Friedman. At its heart, Bob explains, monetarism is a cousin of Keynesianism—one advocates fiscal stimulus, the other monetary stimulus. Both go astray when it comes to money, and both fail to see the trees in the macro forest. Bob explains why in this great discussion of the differences between the Austrian and Chicago schools.
    https://mises.org/library/bob-murphy...ism-goes-wrong
    Quote Originally Posted by Ron Paul View Post
    The intellectual battle for liberty can appear to be a lonely one at times. However, the numbers are not as important as the principles that we hold. Leonard Read always taught that "it's not a numbers game, but an ideological game." That's why it's important to continue to provide a principled philosophy as to what the role of government ought to be, despite the numbers that stare us in the face.



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  3. #2

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    https://www.youtube.com/watch?v=uEgXV4KFHMQ&t=296s


    A few youtube comments on Bob's beard (it is pretty cool the way it's going gray) but Jeff's perma 5 o'clock shadow is what I find fascinating. Is he shaving with a guard everyday? Does his facial hair just grow that fast? I dunno but I'm enjoying it.
    Quote Originally Posted by Ron Paul View Post
    The intellectual battle for liberty can appear to be a lonely one at times. However, the numbers are not as important as the principles that we hold. Leonard Read always taught that "it's not a numbers game, but an ideological game." That's why it's important to continue to provide a principled philosophy as to what the role of government ought to be, despite the numbers that stare us in the face.

  4. #3

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    What's Wrong with Market Monetarism and NGDP Targeting

    https://www.youtube.com/watch?v=pVRknGLgZQY


    Published on Mar 18, 2015
    Free-market economist Joe Salerno explains the problems with the fashionable approach of "NGDP targeting."
    Quote Originally Posted by Ron Paul View Post
    The intellectual battle for liberty can appear to be a lonely one at times. However, the numbers are not as important as the principles that we hold. Leonard Read always taught that "it's not a numbers game, but an ideological game." That's why it's important to continue to provide a principled philosophy as to what the role of government ought to be, despite the numbers that stare us in the face.

  5. #4

    Default

    It is absolutely amazing that Bob Murphy and Jeff Deist celebrated Hayek's birthday by having no idea what what Hayek believed and said about monetary policy.


    "Russ Roberts did an interesting interview with Larry H. White on F.A. Hayek. Among other things, we are reminded that Hayek actually favored stabilizing nominal spending as a policy goal." http://macromarketmusings.blogspot.c...f-nominal.html

    NGDP targeting: Hayek's Rule https://www.adamsmith.org/blog/econo...ng-hayeks-rule

    “I agree with Milton Friedman that once the Crash had occurred, the Federal Reserve System pursued a silly deflationary policy. I am not only against inflation but I am also against deflation. So, once again, a badly programmed monetary policy prolonged the depression.”

    “If I were responsible for the monetary policy of a country I would certainly try to prevent a threatening deflation, that is, an absolute decrease in the stream of incomes, by all suitable means, and would announce that I intended to do so. This alone would probably be sufficient to prevent a degeneration of the recession into a long-lasting depression.”

    “I think it is certainly true that ending an inflation need not lead to that long-lasting period of unemployment like the 1930s, because then the monetary policy was not only wrong during the boom but equally wrong during the Depression. First, they prolonged the boom and caused a worse depression, and then they allowed a deflation to go on and prolonged the Depression.”

    http://hayekcenter.org/?p=5401
    Hayek endorsed anti-deflationary, publicly announced NGDP targeting in 1975


    Last edited by Krugminator2; 05-13-2017 at 02:34 PM.

  6. #5

    Default

    Quote Originally Posted by Krugminator2 View Post
    It is absolutely amazing that Bob Murphy and Jeff Deist celebrated Hayek's birthday by having no idea what what Hayek believed and said about monetary policy.
    Where and how did Murphy and Deist "celebrate" Hayek's birthday?

    Where and how did Murphy and Deist indicate that they have "no idea what Hayek believed and said about monetary policy?"

  7. #6

    Default

    Bob Murphy's predictive record has been horrible in the past eight years, and over the last two decades, it has been very bad. Scott Sumner ripped him to shred a few years ago, and it was quite well-deserved.

    I really don't like the format of the presentation either. Woods somewhat strawman's nGDP targeting and market monetarism, and then proceeds to tear it down. The thing is, I'm not sure if Woods and Murphy strawman monetarism because of their ideological biases, or because they are too lazy to put the work into truly understanding the theory (and maybe they are afraid they'll become converts if they do).






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