It’s incredibly frustrating. The political and policy world falls into two camps:
Those who believe no stimulus is necessary, everything is supply-side.
Those who believe stimulus is necessary but only fiscal stimulus can or should supply it.
It’s like people completely forgot the existence of Milton Friedman, and decided to revert to the stupidest possible version of New Keynesianism, where interest rates are the only lever of monetary policy and the printing press is something that only functions when rates are above zero.
I feel like to both the centre left and the right, Milton Friedman is too heretical now — too right-wing for the left obviously and too left-wing for the right. Consequently, everything about monetarism has been stripped out of the public consciousness and we are left with vulgar Keynesianism and vulgar Austrianism.
We truly live in a Dark Age of economics.
That was a comment from Scott Sumner’s blog, passed along to me by David Levey.