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The Theoretical Nondebate About Monetarism

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  3. Credit and Capital Markets – Kredit und Kapital
  4. Vol. 9, Issue 3
  5. pp. 347–367

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Friedman, B. The Theoretical Nondebate About Monetarism. Credit and Capital Markets – Kredit und Kapital, 9(3), 347-367. https://doi.org/10.3790/ccm.9.3.347
Friedman, Benjamin M. "The Theoretical Nondebate About Monetarism" Credit and Capital Markets – Kredit und Kapital 9.3, 1976, 347-367. https://doi.org/10.3790/ccm.9.3.347
Friedman, Benjamin M. (1976): The Theoretical Nondebate About Monetarism, in: Credit and Capital Markets – Kredit und Kapital, vol. 9, iss. 3, 347-367, [online] https://doi.org/10.3790/ccm.9.3.347
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The Theoretical Nondebate About Monetarism

Friedman, Benjamin M.

Credit and Capital Markets – Kredit und Kapital, Vol. 9 (1976), Iss. 3 : pp. 347–367

2 Citations (CrossRef)

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/ccm.9.3.347
Language
Multiple languages
Pages
21

Friedman, Benjamin M.

Cited By

  1. Money and the Transmission Mechanism in the Optimizing IS-LM Specification

    Nelson, Edward

    History of Political Economy, Vol. 36 (2004), Iss. Suppl_1 P.271

    https://doi.org/10.1215/00182702-36-Suppl_1-271 [Citations: 5]

  2. Monetarist, Keynesian and Quantity Theories

    Meltzer, Allan H.

    Credit and Capital Markets – Kredit und Kapital, Vol. 10 (1977), Iss. 2 P.149

    https://doi.org/10.3790/ccm.10.2.149 [Citations: 0]

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Abstract

Summary The Theoretical Nondebate about Monetarism

The distinction between empirical propositions and theoretical ones is essentially important in making an assessment of the monetarist debate. As key participants in the debate have progressively elaborated exactly what they think on particular questions, it has become increasingly clear that the distinguishing content of monetarism is a set of empirical propositions. Those lessons which economists have thus far learned and accepted from monetarism, as well as those questions which remain in dispute, all concern primarily empirical issues. Of Thomas Mayer’s twelve characteristically monetarist propositions*, eleven are clearly either empirical or preferential in their distinguishing content. The twelfth, “the monetarist model of the transmission process,” combines essentially empirical issues which are in dispute (the stability of the demand-formoney relationship, and the relative degree of measurement difficulty associated with money versus interest rates) and theoretical issues which, on close inspection, are not in dispute (the range of assets for which the net excess demand responds to changes in the public’s holdings of money balances, and reliance on asset stock effects and relative price effects). Indeed, the transmission mechanism, or structural model, specified in Brunner’s and Meltzer’s “monetarist model” is essentially indistinguishable from that specified in Tobin’s “Keynesian” model. The net impact of many years of theoretical contributions on both sides of the monetarist debate has been to clarify the issues sufficiently to demonstrate that there is actually but little theoretical disagreement. The content of the debate has been empirical all along and remains empirical.

Table of Contents

Section Title Page Action Price
Benjamin M. Friedman: The Theoretical Nondebate about Monetarism 347
I. Theory and Empiricism in Mayer's Taxonomy 348
II. Mayer on Monetarists on the Transition Mechanism 351
III. Brunner and Meltzer and Tobin on the Transmission Process 356
IV. Conclusion 363
V. References 363
Zusammenfassung: Die theoretische „Nicht-Auseinandersetzung\" über den Monetarismus 365
Summary: The Theoretical Nondebate about Monetarism 366
Résumé: La « non-querelle » theorétique sur le monétarisme 367

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