“Fish don’t feel the water they swim in. (I’ve heard that’s false, but it’s too good to check). Paul Krugman does not feel the Monetarist hegemony he swims in.” That is Nick Rowe in a good post on fish the role of Monetarism in the New Keynesian model. While I have some quarrels with the monetary transmission mechanism in the NK model, Nick is largely correct in that the core model contains key Monetarist insights.
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