Monetarism and Stagflation

Abstract

The task of Congdon and Chrystal was to clarify the issues which monetarism raises. Mine, it may be concluded, is to confuse. There is something in this. But a medical analogy is more apposite. They have been describing the anatomy of monetarism, what happens to a healthy system when all goes right. My objective is to look at the pathology of monetarism, what happens when the system misbehaves. If the result causes confusion, no apology is made for the real world generally does behave in a confused and pathological manner.