Scott Sumner, "The Money Illusion: Market Monetarism, the Great Recession, and the Future of Monetary Policy" (U Chicago Press, 2021)
New Books in Economics
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The Importance of Understanding the 2008 Great Recession
In the 60s and 70s, inflation was rising due to very, very strong demand pressure. Even without supply problems in the 1970s, we would have had high inflation just because of a rapid growth in spending that was triggered by rapid growth in money creation. So it wasn't all stagflation. Right. And earlier when you were referring to the low interest rate with initially low interest rates, I think that was the red to higher. That's the stockflation phenomenon that you're referring to. Is that correct? Well, not entirely stegvos. Oh, that's interesting. The first half is sort of a theoretical almost treatise in a way. And then the other
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