2012-11-26

The Emperor Has No Clothes

As so-called "market monetarism" quickly rises to its ultimate ascension upon the turrets of economic intellectualism, it is important to keep a certain perspective in mind when considering what this actually means.

Their circular reasoning may enamor them to those less inclined to consider each step in the logical chain (those with a shorter cognitive time-horizon), but one need not wade into the depths of minutia with Scott Sumner to pull the curtain on this one.

All that really needs to be said about Market Monetarism is that even its supporters readily admit that there is so far no way to actually target nominal GDP.

Here, I'll say it again: Market Monetarists support a policy they themselves don't know how to implement.

At least, that's what I get from this recent Bill Woolsey post. No worries, though. I'm probably the idiot in this case.