Wednesday, November 16, 2005
Yes, I'm aware that the whole debt-deflation gold-standard thing is Friedman and Schwartz (edit: or maybe Fisher), not original to Bernanke et al.; I'm not all that well-versed on monatarism, so most of this is new to me. The details of Bernanke's essays are mostly revolving around research filling out and proving the various monetarist hypothesises (hypothesii? What’s the plural of hypothesis?) and some other stuff about searching for "non-monetary" secondary effects of the deflation, having to do with agency costs and the effects of the loss of "credit intermediation" through bank failures.