The very short run

Nick Rowe

Brad DeLong: The keynesian multiplier and the monetary hot potato

"From my perspective the Old Monetarist story doesn't make much sense: people are not often surprised to find that they sold more bonds for cash than they had expected because people do not usually quote a price at which they offer to sell whatever quantity of bonds people want to buy. By contrast, the Old Keynesian story does seem to me to make sense: people do often quote a price at which they offer to sell whatever quantity of newly-produced goods and services people want to buy."