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Podcast: New Books in Economics
Episode: Scott Sumner, "The Money Illusion: Market Monetarism, the Great Recession, and the Future of Monetary Policy" (U Chicago Press, 2021)
Description: Is it possible that the consensus around what caused the 2008 Great Recession is almost entirely wrong? It's happened before. Just as Milton Friedman and Anna Schwartz led the economics community in the 1960s to reevaluate its view of what caused the Great Depression, the same may be happening now to our understanding of the first economic crisis of this century.Foregoing the usual relitigating of the problems of housing markets and banking crises, renowned monetary economist Scott Sumner argues that the Great Recession came down to one thing: nominal GDP, the sum of all nominal spending in...