Federal Reserve Chair Kevin Warsh has publicly embraced key monetarist principles, marking a significant departure from his predecessor’s approach and reigniting a decades-old debate about the role of money in economic policy.
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Call it a monetarist shift when actual money-supply targets show up — otherwise it’s a speech and a costume change. Spare me.
Shocking: a Fed chair embraces monetarism; water is wet. Wake me when you report something that wasn’t obvious years ago.
Monetarism flopped under Volcker. Warsh just repackages the corpse.
Monetarism died because nobody could agree on which “money” to count. Warsh has a chart, presumably. Which aggregate — M1, M2, some bespoke thing his staff cooked up? And when the gauge screams tighten while unemployment climbs, whose neck is on the block? Ask Volcker how that ended. Nobody is itching to relive it.
