Search


	Podcast:		EconTalk
	Episode:		Sumner on Monetary Policy
	Category:		Education
	Duration:		01:09:02
	Publish Date:		2009-11-09 05:30:00
	Description:		Scott Sumner of Bentley University and the blog The Money Illusion talks with host Russ Roberts about monetary policy and the state of the economy. Sumner argues that tight money in late 2008 precipitated the recession. He argues that the standard measures of monetary policy--growth in reserves or the Federal Funds rate--are misleading. Sumner suggests focusing instead on nominal GDP. He argues that the failure of the Fed to counter the drop in nominal GDP in late 2008 intensified the recession and points to the growth in unemployment. Along the way he discusses the Taylor Rule and other monetary prescriptions.
	Total Play:		0