New Monetarist Economics: Models

Webinar by Randall Wright, University of Wisconsin. Over the past 25 years a new approach has been developed to study monetary theory and policy, and more broadly to study liquidity. This approach sometimes goes by the name New Monetarist Economics.1 Research in the area lies at an interface between macro and micro — it is meant to be empirically and policy relevant, but it also strives for theoretical rigor and logical consistency. While most economists want to be rigorous and consistent, we would argue that those we call New Monetarists are more concerned with microfoundations than alternative schools in macro.