The return of monetarism?
Summary
Host Rob Armstrong interviews Princeton’s Brendan Greeley on the resurgence of monetarism under new Fed Chair Kevin Warsh. They discuss why Milton Friedman’s theory struggled with measurement issues and how modern thinkers like Stephen Moran propose analyzing specific money types rather than aggregate supply. The episode explores how different liquidity forms drove post-pandemic inflation and why the Fed is reconsidering these monetary insights.
Topics discussed
Introduction: Milton Friedman and the definition of monetarism
Why monetarism is making a comeback under Kevin Warsh
Historical context: From 16th century Spain to Volcker
The measurement problem: Money supply and velocity
Modern application: Different types of money and liquidity
Long and Short: Fed task forces and stock market corrections
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