Money and monetary policy for the twenty-first century

Jerry L. Jordan

Review, 2006, vol. 88, issue Nov, 485-510

Abstract: This essay challenges the conventional wisdom about money and monetary policy. The role of money in fostering prosperity is a function of the quality, as well as the quantity, of money. Inflation always harms the performance of an economy. Deflations caused by productivity and innovation can be virtuous. A definition of a non-inflationary environment is set forth. Rapid real growth and low unemployment cannot cause inflation. There is no trade-off between inflation and employment. Higher commodity prices or \\"weak\\" exchange rates cannot cause inflation. High market interest rates are a symptom of inflationary policies. Low interest rates are a reflection of successful anti-inflationary policies, not \\"easy money.\\"

Keywords: Monetary; policy (search for similar items in EconPapers)
Date: 2006
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