> Monetarism still believes in the seductive idea that stability can be achieved by fiddling with the money supply I think you've hit the nail on the head. Th

> Monetarism still believes in the seductive idea that stability can be achieved by fiddling with the money supply I think you've hit the nail on the head. This is my belief as well; while it is apparent that monetary policy can be useful, the old adage goes "if all you have is a hammer, everything starts to look like a nail". It appears that instead of doing the correct (and politically difficult) thing from a fiscal, tax, and policy perspective, we just keep lowering the interest rates and waiting for the next upswing. Which where the Chilean experiment[1] with apolitical fiscal policies will be interesting to observe. I've not seen much on it since, but it'll certainly be tested in the not too distant future. [1] http://www.economist.com/blogs/freeexchange/2013/10/fiscal-policy-0 http://www.economist.com/blogs/freeexchange/2013/10/fiscal-p...