James Tobin Nobel Lecture

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

This week, we are reading and discussing James Tobin's 1981 Nobel lecture: "Money and Finance in the Macro-Economic Process". The lecture explores how fiscal policy and monetary policy might connect up to general equilibrium models of the macro-economy represented as systems of simultaneous equations.

https://www.nobelprize.org/uploads/2018/06/tobin-lecture.pdf

What does it mean for markets to be perfectly efficient? Is there a role for money in the economy if there are no market failures?

Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday.

See our Discord server for ongoing discussion: https://discord.gg/NJMyew58