Vulkar was appointed in august 79, but we say that the volkar shock started in october 79. And it starts with an announcement that volker makes following a meeting of the feds. Now, folker says they're not goig to do interest rate targeting any more. They're going to target the growth of the money supply. That is essentially what a monitorist like freedman would prescribe. So in his sort of stated rational volgar is becomes a monit embraces monitorism. This is a huge ena victory for fr freedman's school of thought. But he was never a doctrinaire monitorist. He was a practical, a practical central banker,
Inflation is once again at the center of political debate. Dan interviews Tim Barker to put monetary policy in its historical and class war context.
Reading:
Preferred Shares by Tim Barker phenomenalworld.org/analysis/wage-share
email digradiopod@gmail.com for PDFs of the following two articles:
The Vietnam War and the Political Economy of Full Employment by Dean Baker, Robert Pollin and Elizabeth Zahrt
Class Conflict and the "Natural Rate of Unemployment" by Robert Pollin
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