Working Paper: NBER ID: w12593
Authors: Michael Bordo; Anna J. Schwartz
Abstract: David Laidler has been a major player in the development of the monetarist tradition. As the monetarist approach lost influence on policy makers he kept defending the importance of many of its principles. In this paper we survey and assess the impact on monetary economics of Laidler's work on the demand for money and the quantity theory of money; the transmission mechanism on the link between money and nominal income; the Phillips Curve; the monetary approach to the balance of payments; and monetary policy.
Keywords: No keywords provided
JEL Codes: E00; E50
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Laidler's contributions to the demand for money (E41) | understanding monetary policy (E52) |
| Laidler's findings on the long-run stability of money demand (E41) | adoption of monetary aggregate targeting in the US and other countries (E52) |
| monetary expansion (E50) | inflation outcomes during the late 1960s and 1970s (E31) |
| Laidler's critique of the durable view approach (B50) | shift in understanding of money demand dynamics (E41) |