Monday, September 21, 2009

Monetarist Theory as Apologia

SAlbert Kessler, Chairman, Appenzeller Business Press AG - Inflation versus Deflation.pdf:
This is yet another point that Friedman doesn’t seem to deal with. He postulates that a steady-state central bank that feeds just a little money into the economy would prove efficient and productive. What is lost in Friedman’s argument is why he feels the need to justify central banking at all. In the end, the monetarist argument seems more of an apologia for central banking than a considered analysis of what really occurs in an economy that offers up a money monopoly to a handful of individuals.

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