Any followers of Market Monetarism?

[NCR85]

I recommend at least watching these videos:

Quick presentation: http://www.youtube.com/watch?v=VP4IiKxNj8I

Long version: http://www.youtube.com/watch?v=ktlRWF-NwwE

Scott Sumner's blog can be found here: http://www.themoneyillusion.com/


Sumner's explanation of the Eurozone crisis was a major eye opener to me: http://www.themoneyillusion.com/?p=18161


I think Sumner may be right about a good number of things. However, I question the wisdom of trying to send the economy back to it's Great Moderation trend. Doing so would probably imply that private debt growth is sent back on it's unsustainable exponential growth trend.

There's also the issue of political constraints on monetary policy. Sumner wants the Fed to engage in massively expansionary monetary policy relative to anything seen so far. Is this at all politically feasible under any conceivable scenario?

And of course, it is a very strange thing for him to call the monetary action that was done so far "tight monetary policy". I'm not sure I can get behind that.

Thoughts?

[raja]

Re: Any followers of Market Monetarism?

NCR85,

Is there a written summary anywhere of what he's saying?
I'm finding it hard to follow.

Also, I wonder at the intelligence of someone who presents slides of long text, yet talks without a break while these slides are on the screen.
How is one supposed to read the slides and listen to his words at the same time? And why doesn't he understand that this a a problem?

[NCR85]

Re: Any followers of Market Monetarism?

Is there a written summary anywhere of what he's saying?

I don't think there is anything quite as concise as the presentation in the "quick" video I posted. The "about" page on his blog may be helpful, though: http://www.themoneyillusion.com/?page_id=3443

This is slightly wordy but presents the case for NGDP targeting quite elaborately: http://www.nationalaffairs.com/publications/detail/re-targeting-the-fed

Links to Sumner's views on money and macro: http://www.themoneyillusion.com/?p=10970

But really, my recommendation is to try to parse the two videos I posted links to. They are most concise versions of the story.

Also, I wonder at the intelligence of someone who presents slides of long text, yet talks without a break while these slides are on the screen.
How is one supposed to read the slides and listen to his words at the same time? And why doesn't he understand that this a a problem?

Can't you just pause the video? I didn't have that much of a problem with it.