Timothy B. Lee at the Cato Institute has a couple of interesting comments out on US monetary policy – they are at the core very much Market Monetarist.
Here is a few recommendations:
Fighting the Last Monetary War (Happy to see Tim is reading Friedman’s Money Mischief – one of my favourite books)
More on Nominal Sales and Monetary Policy (happy to see a tribute to William Niskanen’s monetary policy views)
Beckworth, Ponnuru and Niskanen on Monetary Policy (Tim, you make us proud…)
Most Market Monetarists talk about NGDP level targeting, but I guess people like Beckworth and Woolsey would prefer targeting “nominal final sales to domestic purchasers” as William Niskanen suggested. I have sympathy for that as well – especially if I think of none-US monetary policy then a target on what I would call final domestic spending would be appropriate. Furthermore, final sales was also Clark Warburton’s prefered measure for Py and given I think Warburton is the most underappreciated monetarist ever it is only natural for me to advocate to use final sales rather NGDP as a measure of Py.
Anyway, nice to see a Cato scholar on board. The Cato Institute has been at the forefront of “policy development” in the US for decades and it’s annual monetary conference continues to be hugely influential on US and global thinking about monetary policy and theory so it is truly great that Tim is spreading the message from William Niskanen.