Monetarism

So they kept trying.

First they had the Snake, then they had the EMS, the European Monetarist, um, System.

All those failed.

Then they had the ERM, which w- made George Soros a very rich man in 1990, 1991 when it blew up.

rack.The picture that sits in many of us is the ironclad woman who reshaped Britain, but it helps to peel back layers and ask, what did she actually do for the economy? And whom did it hurt? When Thatcher took office, she faced a nation swollen with inflation, high public debt, and a stagnant industrial sector.

Her first task was to make the pound more credible by tightening monetary policy, a move borrowed straight from Milton Friedman's monetarism.

Monetarism didn't promise instant prosperity.

It aimed for a steady, small expansion of the money supply.

Thatcher's ministers lowered interest rates in 1985, curbing inflation from 9% to about one point, but the cost was an immediate spike in unemployment that rattled whole regions.

All right, let's move on to a new paper that you have written, Steve, along with Nouriel Roubini and Peter Ireland, a friend of the show.

And this paper is titled, A Return to Monitorism? So that seems like a pretty provocative title, but what are you doing in this paper?

Thank you.

So yeah, so again, to give credit where it's due, my Hudson Bay Capital College, Nouriel Roubini and Peter Ireland from Boston College wrote this paper together with me.