tag:blogger.com,1999:blog-8897997766931633186.post7650353360197058168..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Market Monetarism and New Keynesian Economics AgainBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8897997766931633186.post-79285701809063093152014-01-11T18:03:31.974-05:002014-01-11T18:03:31.974-05:00"As an aside, I am very interested in monetar..."As an aside, I am very interested in monetary regimes that have no base money. Competing private banks issue banknotes and deposits that are convertible to index futures contracts on nominal GDP."<br />In this case, futures contracts serve as base money. And collateral rules on futures contracts serve as a codification of Taylor Rules.Vaidashttps://twitter.com/VaidasUrbanoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-77515767855482628792014-01-11T11:16:02.405-05:002014-01-11T11:16:02.405-05:00Thanks for elaborating, Prof. Woolsey. I think if...Thanks for elaborating, Prof. Woolsey. I think if the profession treated the Taylor rule as it was originally treated by Taylor--as a description of how central banks actually behaved, rather than a prescription of how they ought to behave--then monetary theory and policy economists would talk about it way less. That would be a good thing. The debate as to whether the policy rate is an instrument or a target seems to be a red herring. Why not just shoot for a stable nominal anchor and eschew the debate entirely?Alex Salterhttps://www.blogger.com/profile/05425418383139682773noreply@blogger.com