tag:blogger.com,1999:blog-3621026.post205673809498565538..comments2024-03-28T10:25:22.825+01:00Comments on Robert's Stochastic thoughts: More Contra YglesiasRoberthttp://www.blogger.com/profile/14455788499385673507noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3621026.post-22548487426056753072012-08-01T15:32:11.232+02:002012-08-01T15:32:11.232+02:00Right. The modern monetarist argument that Yglesia...Right. The modern monetarist argument that Yglesias has picked up somehow is really the same as the old monetarist argument -- that a "credible" central bank can control the inflation directly via expectations without any need for policy to be transmitted through the financial system into changes in aggregate demand. This was why monetarists in both the US and UK claimed it would be possible to end the late-70s inflation without a significant recession, and why monetarists elsewhere similarly claimed a "regime change" was enough to stabilize prices. Historically the monetarists were wrong every time, but as you say, Yglesias doesn't know any history.JW Masonhttps://www.blogger.com/profile/10664452827447313845noreply@blogger.com