Scott Sumner on Alternative Approaches to Monetary Policy
Macro Musings with David Beckworth
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How Do You See a Lack of Momentum for M M T in Monetary Policy?
When interest rates are stuck close to zero, monetary policy is often seen as ineffective. When inflation is very high, persistently high, monitrous models that focus on money supply growth tend to dominate. So you can think of the new cansian models or the hybrid of the old cansian and the monitros approach. And they agree with the monitorist that ultimately it's monetary policy that drives aggregate demand and inflation, not fiscal policy.
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