Market monetarism is a school of macroeconomic thought that advocates that central banks target the level of nominal income instead of inflation, unemployment, or other measures of economic activity, including in times of shocks such as the bursting of the real estate bubble in 2006, and in the financial crisis that followed.[1] In contrast to traditional monetarists, market monetarists do not believe monetary aggregates or commodity prices such as gold are the optimal guide to intervention. Market monetarists also reject the New Keynesian focus on interest rates as the primary instrument of monetary policy.[1] Market monetarists prefer a nominal income target due to their twin beliefs that rational expectations are crucial to policy, and that markets react instantly to changes in their expectations about future policy, without the "long and variable lags" postulated by Milton Friedman.[2][3]
^ abChristensen, Lars (September 13, 2011). "Market Monetarism:The Second Monetarist Counterrevolution" (PDF). Retrieved October 19, 2011.
^Goodhart, Charles A.E. (July–August 2001). "Monetary Transmission Lags and the Formulation of the Policy Decision on Interest Rates" (PDF). St. Louis Federal Reserve Bank. Retrieved October 21, 2011.
Marketmonetarism is a school of macroeconomic thought that advocates that central banks target the level of nominal income instead of inflation, unemployment...
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unemployment and high inflation, Friedman and Phelps were vindicated. Monetarism was particularly influential in the early 1980s, but fell out of favor...
greatly extended by repeated gold market shocks and New Deal wage policies. A school of economics known as marketmonetarism has coalesced around Sumner's...
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situations where fungible instruments trade at different prices in different market segments, and investors who seek profit through long-term ownership of an...
several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary...
The broader neo-Keynesian intellectual program would eventually produce monetarism and other versions of Keynesian macroeconomics in the 1960s. Firms and...
schools differ in that New Keynesian analysis usually assumes a variety of market failures. In particular, New Keynesians assume that there is imperfect competition...
The social market economy (SOME; German: soziale Marktwirtschaft), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social...
economists (most notably Scott Sumner) whose views came to be known as marketmonetarism. They claimed that the crisis would have been far less severe had...
also known as non-Walrasian theory, equilibrium with rationing, the non-market clearing approach, and non-tâtonnement theory. Early work in the area was...
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throughout the 1970s of ideas based upon more classical analysis, including monetarism, supply-side economics, and new classical economics. However, by the late...
2024-02-08. Retrieved 2022-03-11. Sumner, S. (2021). The Money Illusion: MarketMonetarism, the Great Recession, and the Future of Monetary Policy. University...
encouraged the creation of new neoclassical lines of thoughts such as Monetarism, New classical macroeconomics, Supply-side economics, or the Public choice...
model details how the expectations of future capital gains in the stock market are a key driver of actual stock price movements. In general, “asset price...
the school. Perhaps the central idea behind it is on the ability of the market to be self-correcting as well as being the most superior institution in...
specific price reference in the subsequent monetary policies (Keynesian and Monetarism). Supply-side economists asserted that the contraction component of stagflation...
the market process that might underlie those aggregates". Markets are less efficient than the Austrian School maintains, shown by many cases of market failure...
greater labour market flexibility, lower tax rates for businesses, less restrictions on both domestic and foreign capital, open markets, etc. In support...
States, 1867–1960. Princeton University Press. Lagassé, Paul (2000). "Monetarism". The Columbia Encyclopedia (6th ed.). New York: Columbia University Press...
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parts of their business can be bought in the form of shares on the stock market. This is done as a way of raising capital to finance the investments of...
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