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Yet, for a long time, economists managed to keep monetary analysis safely constrained within technical territory.
In fact, rereading Friedman's 1970 summary of his ideas, "A Theoretical Framework for Monetary Analysis," what's striking is how Keynesian it seems.
Ben S. Bernanke, the Fed chairman, is a student of Depression history and is well aware of Mr. Friedman's monetary analysis.
They include, for example, this acute piece of monetary analysis from the President: the "liquidity problem", he informs the chairman, is "just bullshit".
It would be ironic indeed ??f history should treat Milton Friedman the way it treated Karl Marx, and that the first "pure" applications of his monetary analysis should oc cur in Eastern Europe.
Given the enormous salaries on offer elsewhere in the City, the Bank is naturally concerned about the second charge – that it loses too much of its top talent, but Gareth Ramsay, head of the monetary analysis division, says the idea of a brain drain to the City is not correct.
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Henry Simons and Lloyd Mints directly, and Frank Knight and Jacob Viner at one remove, had continued to base their macro-monetary analysis on the quantity theory of money, in contrast to the IS/LM Keynes/Hicks model.
As deputy governor responsible for the bank's monetary-analysis wing, he had guided it through the early years of independent interest-rate setting.
Dr Donald Smith Haddington, East Lothian Your report of the International Monetary Fund analysis (Income inequality hampers growth – IMF, 16 June) is fascinating.
This paper proposes an explanation for the frequent appearance of a price puzzle in VARs designed for monetary policy analysis.
The canonical new Keynesian Phillips curve has become a standard component of models designed for monetary policy analysis.
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