I've been impressed by the reasoning behind market monetarism (mainstream credibility: good and rising). They also seem to have a pretty good ante facto grasp

I've been impressed by the reasoning behind market monetarism (mainstream credibility: good and rising). They also seem to have a pretty good ante facto grasp on events, in the sense that when e.g. Japan commits to a less tight monetary policy the results (amazingly rising real GDP with little inflation) do not seem like the sort of the sort of thing other pundits would expect, while being the sort of thing you would expect from reading market monetarist blogs. It gives the impression of being the theory that takes the last few years in stride (or earlier decades too of course) whereas the other economic stories I know are busy manufacturing new special explanations for each successive event. Check the sidebar of "The Money Illusion" for an introduction or Google market monetarism. Relevant judgments here: Fiscal policy can't do anything monetary policy can't, so you should generally prefer QE to increased government debt, unless a separate case is made for government investment qua investment; with a properly behaving central bank the fiscal multiplier is exactly zero because the central bank is already stabilizing NGDP. Money is 'tight' or 'loose' in the general economy depending on NGDP growth rates; looking at interest rates or money supply will be exceedingly misleading as to what the effective policy is right now, never mind what it should be going forward. -- Eliezer Yudkowsky