Great economics here

A very senior economist of my acquaintance said this in an email today (due to Chatham House rules I cannot disclose who):

If mainstream monetary theory cannot explain fluctuations in prices and activity, it is surely wrong to subordinate macroeconomic policy to an inflation target.

That pretty much kills dead the whole debate on central bank independence in my opinion. I was most amused.

Milton Friedman said that inflation is always and everywhere a monetary phenomenon. That plus MV = PQ is pretty mainstream.

What is it about those two that The Great Tuber disagrees with?

12 comments on “Great economics here

  1. Chatham House rule requires that you do not name, or supply enough information that allows others to deduce, who said something.

    I’m willing to bet there are very few “very senior economists” who are acquaintances of Murphy and who would engage in email exchanges with him so that the identity of the person probably may be inferred, which would be a breach of the rule by Murphy

  2. “due to Chatham House rules I cannot disclose who):”

    And there is only one Rule. So he’s showing his ignorance at the same time as trying to show off.

  3. “That pretty much kills dead the whole debate on central bank independence in my opinion.”

    “Captain Rum’s opinion” strikes again.

  4. Andrew C:

    But whose opinion is more important than his in his mind?

    ‘Important people agree with me’

    ‘That’s your last contribution here’

  5. The economist in question is, presumably, Wrong-Lewis – he being one of the few people who shared a recent panel with Captain Potato with any real credentials.

  6. Does “due to Chatham House rules I cannot disclose who” translate into Andrew Simms?

  7. Why would a “very senior economist” be having an email discussion with Murphy under the Chatham House rule?

    Is the senior economist ashamed of his opinion? I can’t believe they work in an organisation that requires them to have a fixed view, and one they disagree with.

  8. A private correspondence, just more virtue signalling, look at me all the important people talk to me, but I can’t say who

  9. Bloke in North Dorset said:
    “Is the senior economist ashamed of his opinion? ”

    More likely ashamed of corresponding with Murphy.

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