Monday, December 3, 2012

Dissing Money Supply Discussion at the University of Chicago

This Sunday's guest on the Robert Wenzel Show was University of Chicago economist Casey Mulligan. I started off the interview with a discussion of money supply growth in relation to the Great Recession. Given the discussion, it appears that no one at the University of Chicago raised alarm bells when Fed money pumping fell off a cliff in the Summer of 2008. Is Milton Friedman style monetary theory dead at the University of Chicago? I closed that segment of the interview by going beyond Chicago school theory and pointing out the Great Recession unfolded in a manner consistent with Austrian Business Cycle Theory.

How bad does the University of Chicago want to bury such discussion? Professor Mulligan posted the youtube version of the show, but cut out the money supply discussion.

Here's what he wrote on his blog about the shortened clip:
I jump the video ahead to the 8:38 mark because it consists of a full 8 minutes digression on the month-to-month time path of the money supply during 2008. Rewind if you want to hear that part.
The full version can be heard here.

2 comments:

  1. "it consists of a full 8 minutes digression on the month-to-month time path of the money supply during 2008."

    Someone's got ADD or doesn't like the discussion....I vote #2.

    8 minutes doesn't seem too long to at least listen to someone who is suggesting the fundamental reason our current malaise...even if you don't agree.

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  2. Is this the same chump that was interviewed on EconTalk this weekend?

    http://www.econtalk.org/archives/2012/12/mulligan_on_red.html

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