KEYNESIAN-MONETARist debate

complex KEYNESian links

FED		MONEY		MONEY		INTEREST		BUSINESS		AGGREGATE
		SUPPLY		DEMAND		RATEs		INVESTMENT		DEMAND

 

Simple Monetarist links

FED		MONEY		Consumption		AGGREGATE
		SUPPLY				DEMAND

 

 

 

 

 

 

 

 

 

 

Fool in the Shower

 

 

 

 

 

 

 

 

 

 

 

 

 

fOOL IN THE sHOWER?

 

 

 

 

 

 

 

 

 

 

 

Irrational Exuberance? S&P 500: 1970-2006

 

 

 

 

 

 

 

 

 

 

Optimum Quantity of Money

 

 

 

 

 

 

 

 

 

 

 

FISCAL POLICY V. MONETARY POLICY

 

 

 

 

 

 

 

 

 

 

 

GAME OVER SPRING 2008

 

 

 

 

 

 

 

 

 

 

 

QUANTITY THEORY OF MONEY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

gRAND tETONS: RECESSION PROOF ECONOMY?

 

 

 

 

 

 

 

 

 

TOOLS OF THE FED

DISCOUNT RATE		MEMBER BANK LOANS
FEDERAL FUNDS RATE		LOANS BETWEEN BANKS
RESERVE REQUIREMENTS		RATIO OF DEPOSITS HELD
OPEN MARKET OPERATIONS		BUY/SELL GOVERNMENT BONDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

friedman