Nicholas Kaldor believes that Milton Friedman’s teachings of monetary policy and the quantity theory of money are correct. In his paper, he talks about the inner working of currency circulation and how they relate to changes in the money supply. Kaldor also analyses the rise of Friedman’s beliefs and how they impacted the economy of the current time, being 1970.
The Monetary Policy Report Canada is a quarterly write up presenting projected inflation rates and growth in the Canadian economy while assessing risks. The report explains what Canada plans on enacting into its policies in the near future while giving an in-depth analysis of the risks involved. Canada’s inflation targeting, monetary policy instruments, and economy monitoring give real-life data on how effective monetary policy can be.
The Australian Business Cycle Theory criticizes current government involvement in manipulating interest rates, recommending a more liberal and laissez-faire-economic structure. Dan Mahoney criticizes “the media’s favourite phony solution” of the FED dropping interest rates until the economy recovers. Rather than using monetary policy, which has often occurred in the United States, Mahoney idealizes with an open economy with minimal government intervention. This article serves as a counter to pro-monetary policy views.
An article on bloomberg.com, written by Stephanie Kelton, argues that the next recession in the United States should be dealt with using fiscal rather than monetary policy. Criticizing the FED and monetary policy, Kelton provides stats on target versus actual inflation rates in the United States, explaining that there is not much wiggle room to kickstart the economy without causing higher inflation rates. It is discussed that fiscal policy may be the more effective way to deal with changes in the US economy.
Kimberly Amadeo’s article in thebalance.com speaks of monetarism and what it entails. She explains that monetarism argues that the money supply is the most important driver of economic growth. While proper use of monetary policy, given by Milton Friedman (“The Father of Monetarism”), can change the money supply in times of need, improper use can cause stagflation and hard economic times such as the Great depression. Amadeo gives a brief history of the practice of monetarism, while arguing for its use and importance.
Crash Course Economics’ episode on different schools of thought outlines the changes and constant debate on how our economies should be run. Contrasting the ideas of Classical and Keynesian thought processes, a clear outline of different political options to help economies is given. Specifically, the source speaks about whether or not monetary and fiscal policies should be enacted in times of recession, or if letting the economy fix itself is the most effective action to take. While there is no clear bias as to the opinions of the writers, the video speaks to points in history where different policies were used, their outcomes, and criticism.