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Monetarists and Keynesians on Central Banking: A Study of a Failed Debate

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  • Thomas Mayer

    (Department of Economics, University of California Davis)

Abstract

This paper reviews and appraises the debate about whether the central bank should pursue counter-cyclical policy or generate a stable monetary growth rate. It focuses on whether the participants have followed the rules of "good conversation," and concludes that they have not. Monetarist have over-stated their case, and their opponents have, in large part, just ignored salient points that the monetarists have raised. All the same, the debate has advanced economics to some extent. To support these conclusions the literature generated by this debate is discussed in some detail.

Suggested Citation

  • Thomas Mayer, 2003. "Monetarists and Keynesians on Central Banking: A Study of a Failed Debate," Working Papers 137, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:137
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    1. Cargill, Thomas F & Meyer, Robert A, 1978. "The Time Varying Response of Income to Changes in Monetary and Fiscal Policy," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 1-7, February.
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    Cited by:

    1. Thomas Mayer, 2001. "The role of ideology in disagreements among economists: a quantitative analysis," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 253-273.
    2. Thomas Mayer, 2013. "Reply to Deirdre McCloskey and Stephen Ziliak on Statistical Significance," Econ Journal Watch, Econ Journal Watch, vol. 10(1), pages 87-96, January.
    3. Thomas Mayer, 2001. "The role of ideology in disagreements among economists: a quantitative analysis," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 253-273.

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