Pyrmonter on Scott Sumner

Scott Sumner has ploughed something of an independent furrow, championing the cause of  ‘market monetarism’, an attempt to breathe life into that once common ‘monetarist’ approach to macroeconomics whose star has waned in the last 30 years.  Attentive Cats may recall that before he became a follower of a latter-day political Messiah, Steve Kates wrote a scornful critique of his work on the propagation of the Great Depression.

Whatever you think of Sumner’s macroeconomics (I’m not persuaded; but I think Kates was being ungenerous; and that Sumner has a point in insisting on the continuing relevance of monetary (or credit) aggregates, and the dangers of ‘reasoning from a price change’), he blogs, and does so well, bridging the gulf between the participants in US economic policy-making and the informed general reader.  Now at a specialist centre at George Mason University, he was previously a career academic at a business-oriented university in Massachusetts.

Interspersed among the posts on money and US sports are his insights into the state of the world.  While hailing from a similar background, he parts ways with Steve Kates on the merits of the current US government.  One of his more recent posts will chime with those who recall the Doomlord’s work on the state as a stationary bandit.

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8 Responses to Pyrmonter on Scott Sumner

  1. JC

    Scott is the best monetary economist in the world. No one who is half interested about the state of monetary policy should be missing out on reading his blog. Market monetarism is the end of history as far as I’m concerned with respect to monetary economics.

  2. sdfc

    Scott Sumner puts all his eggs in central bank money creation and ignores inside money creation. I don’t see how it can be described as market monetarism.

  3. JC

    Oh, what is inside money creation because that’s a term I’ve never heard before.

  4. JC

    What you mean is bank credit, right? Credit is NOT money. Credit is credit. We’ve been through this before and it doesn’t seem to sink in.

  5. sdfc

    Banks create deposits when they buy assets. Loans are bank assets. Deposits are money.

  6. JC

    No, you’re wrong as usual.

    A bank cannot buy an assets without a deposit.

  7. sdfc

    Banks create deposits when they buy an asset. The idea that banks grab someone’s deposit and spend it on an asset is simply false.

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