12 July 2007

Goodhart's Law

What does Goodhart's Law say about monetarism? It does lead to me lack confidence in it.


VikingMoose said...

what do you mean?

srsly - I don't understand what you're driving at here. "Monetarism" as a main branch of economics has been kicked away......

Grotius said...

Not according to some.

VikingMoose said...

yes it has.

don't confuse monetarism with monetary policy.

While there are vestiges of monetarism (as there are vestiges of other old schools), modern research and practice generally falls under "New Classical", "New Keynesian", and "Growth". There is also considerable overlap.

there is still research in monetary and fiscal policies, of course.

Check out David Romer's Advanced Macroeconomics (the standard textbook for first year PhD students) to see. Blanchard's text (don't have that near right now) also sketches where econ is these days.