All posts tagged Market monetarism

The Long-Run Effects of Monetary Policy on Interest Rates

After reading Scott Sumner’s recent paper on the Princeton School of Macroeconomics and Zero Lower Bound, I revisited papers of other Princeton economists.[1]Sumner, Scott, The Princeton School and the Zero Lower Bound (October 2021). Mercatus Center Working Paper, In the second part of the paper, Sumner discussed the Princeton School’s relationship with new schools […]

IS-LM is not a useful model

I have to admit that I have rarely used the IS-LM model since I became interested in economics. Instead, I find the AD-AS model much more useful. Of course, this does not mean that there is a major theoretical flaw in the IS-LM model. Rather, I think that the inferences that economists make by looking […]

Random thoughts on economics

I think most people understand the supply and demand less than we think. That’s because supply and demand are more confusing and complex than what is taught in mainstream EC101 lectures today. Maybe you don’t think so, but I do. Suppose we asked students who have already taken EC101&102: “Oil prices fell. For this reason, […]

Lessons From the Past

Studying pre-modern economic history and economic trends can teach a lot. You can take many different perspectives, especially when studying the first invention of money, the Roman period (specifically the 3rd-century crisis), and the High Medieval economy. Years ago, while studying pre-modern economic history for the first time, I wondered how money was invented. Until […]