"So do you have any plans, ever to make a video about how depressions are caused by excess demand for money and the solution is to supply more money? I've asked you this several times now.OK, so "convoluted explanation" might not be burying the hatchet... but from now on I'll try to.
- Would Russ even work with you on that?
- How do you think your audience would react?
- Do you think your audience would be confused if you said this was the Say-Mill-Hayek position but not the Malthus-Keynes-Krugman position?
If you really think an excess demand for money is the cause of a depression (not that real shocks, etc. couldn't cause problems for economies - just that that's not "the" cause of modern business cycles), I would think this project would be a priority.
If you asked your average viewer of your three videos if you held this position, I do not think many would guess that you do. I certainly wouldn't know it without your convoluted explanations in your emails about what you were really saying in your Macro Follies video. It might be wise to set the record straight and simply help out the prospects for good policy if you were to make a video like this. If you did, I'd even consult on it for free.
Whatever our disagreements on Keynes and Malthus we agree that Mill was saying that excess demand for money could cause depressions and we both like Mill for that. You say this was the inspiration for your Macro Follies video. I would guess that almost none of the viewers of that video would have guessed it came from an essay that argued that excess demand for money can reduce the demand for all goods (since money trades for all goods) and causes depressions."
Many of you are probably friends with John on facebook. If not, his page is open. There's also probably an Econstories email address somewhere.
I encourage everyone to email him or post messages saying that we need a video making it clear that (1.) excess demand for money causes a decline in demand for the goods that money trades for (not "goods in general" he's very insistent on that one!), (2.) which causes depressions, and that (3.) the right response is (quoting John now) "the solution is to increase the supply of money".
If he made a video that made these three points, it would be something Keynesians, monetarists, and (he alleges) Hayekians would all get behind. Wouldn't that be a great statement for good economic policy?
Now that I think about it, I'm a little surprised he didn't start with this one.
But let's put the pressure on - make the video!