Midweek Market Monetarist Links and Summaries - 8/21/13

Yep, it's been one of those weeks where the reality of throttling back on growth around the world is settling in - with any number of takes on national turmoil to tell the story. Unfortunately it seems a crisis was a "perfectly good thing to waste" after all, in that far too many people remain convinced the best thing to do is just sit on one's hands. Apparently, some "lucky duckies" even get paid for doing so! Here in the U.S., few are encouraged by the fact that whoever follows Bernanke will likely not be as well versed in Great Depression studies, among other pertinent monetary policy issues. Anyway, here goes...

Yichuan Wang provided a thoughtful post this week:
"A Practitioner's Thoughts on Market Monetarism"
In comments at The Money Illusion, Scott Sumner pointed to an older post which dealt with this same topic, and also noted that it was more timely than ever:
"Fiscal multipliers are zero with inflation targeting central banks"

I agree wholeheartedly with Nick Rowe, that models which don't include money can portray a mixed up view of the world. In this post, Nick Rowe explains how New Keynesians really need the Pigou effect:
http://worthwhile.typepad.com/worthwhile_canadian_initi/2013/08/new-keynesians-really-really-need-the-pigou-effect.html

Bruegel.org provides a wrap of the recent discussion around the web, regarding the intellectual legacy of Milton Friedman, of which David Glasner has contributed further posts recently as well:
http://www.bruegel.org/nc/blog/detail/article/1139-blogs-review-the-intellectual-legacy-of-milton-friedman/

Market Monetarism - strictly speaking - is not about measuring the activity of banking, and yet banking activities greatly affect multiple aspects of economic activity in ways not even close to reconciliation or structural change. Here's two takes from the week which consider banking aspects. The post by Lars Christensen includes links for papers re banking and financial reform:
http://marketmonetarist.com/2013/08/19/property-rights-and-banking-crisis-toward-a-financial-constitution/
http://jpkoning.blogspot.com/2013/08/scott-sumner-ignores-banks-so-what.html
Also, this apt quote from Koning: "Whether there is a banking system or not in the picture will interfere in no way with a central banker's Archimedean lever."

Regarding the second link above, JPKoning was responding to this post in which Scott Sumner (also) explained to Cullen Roche in comments that banking is not a part of monetary policy: http://www.themoneyillusion.com/?p=23072&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Themoneyillusion+%28TheMoneyIllusion%29

Marcus Nunes takes note of the fact that Paul Krugman believes interest rates to be a good indicator of the stance of monetary policy:
http://thefaintofheart.wordpress.com/2013/08/18/paul-krugman-thinks-interest-rates-is-a-good-indicator-of-the-stance-of-monetary-policy/
In this post, Scott Sumner responds, and also lists ten possible indicators for monetary policy:
http://www.themoneyillusion.com/?p=23083&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Themoneyillusion+%28TheMoneyIllusion%29

Update: Pardon the date glitch! I had a couple of issues yesterday with the Blogger format (or it had issues with me),  and at one point when I tried to back up, the program thought I'd given the command to publish an unfinished post. Also, I wanted to link to Ryan Avent this week, and this is one of those times when The Economist thinks I've hit my page view limit for the month.