The Money Illusion

Market Monetarism, the Great Recession, and the Future of Monetary Policy

De: Scott Sumner

Narrado por: Steven Jay Cohen

Is it possible that the consensus around what caused the 2008 Great Recession is almost entirely wrong? It's happened before. Just as Milton Friedman and Anna Schwartz led the economics community in the 1960s to reevaluate its view of what caused the Great Depression, the same may be happening now to our understanding of the first economic crisis of this century.

Foregoing the usual relitigating of the problems of housing markets and banking crises, renowned monetary economist Scott Sumner argues that the Great Recession came down to one thing: nominal GDP, the sum of all nominal spending in the economy, which the Federal Reserve erred in allowing to plummet. The Money Illusion is an end-to-end case for this school of thought, known as market monetarism, written by its leading voice in economics. Based almost entirely on standard macroeconomic concepts, this highly accessible audiobook lays a groundwork for a simple yet fundamentally radical understanding of how monetary policy can work best: providing a stable environment for a market economy to flourish.

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Market Monetarism sounds like the way of the future

Beautifully explained with willingness to explain the other side’s POV. Wish the graphs and charts were available in Audible.

Bob Murphy brought me here

I enjoyed Bob Murphy and Scott Sumners discussion on the Bob Murphy show, so I decided to purchase Scott Sumner‘s book in order to better understand the complete idea of NGDP targeting.

I think Scott Sumner brings a pretty good concept to the forefront in this book and that is that easy money policy isn’t always dictated solely on interest rates. He also brings into perspective that understanding both the supply side versus the demand side when dealing with prices. He uses this reoccurring statement that I think is pretty important for all economic students to understand and that’s the idea that he says to not always reason from a price change.

Scott Sumner also goes through the ideas of why he consistently has said that the 2008 financial crisis was actually caused by tight money as opposed to loose money as a lot of other economists are saying. I think to better understand his complete position. I advise anyone who has read this book to actually go listen to his conversation with Bob Murphy,