Scott Sumner has drawn a lot of attention for his peculiar view that monetary policy was tight in 2008, and that this tightness was the cause of the current recession and the recent financial crisis. I think his argument is at least somewhat persuasive; I don’t know if (or think that) it was the whole problem, but it does seem to me that his monetary proposal would have at least decreased the severity of the recession.
Monetary confusion
Monetary confusion
Monetary confusion
Scott Sumner has drawn a lot of attention for his peculiar view that monetary policy was tight in 2008, and that this tightness was the cause of the current recession and the recent financial crisis. I think his argument is at least somewhat persuasive; I don’t know if (or think that) it was the whole problem, but it does seem to me that his monetary proposal would have at least decreased the severity of the recession.