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No shift in monetary or fiscal policy drives different outcomes, George Selgin notes
George Selgin addresses the relationship between interest rates, money stock, and total spending. He clarifies that maintaining a constant interest rate does not necessarily imply stability in the money stock or total spending, especially in the context of a demand shock to the IS curve while both monetary and fiscal policies remain unchanged.
Selgin has previously critiqued interventions during spending declines, describing such actions as bailouts for producers when costs cannot be recovered. He has also argued that central banks acquired the authority to issue currency through specific legislation, rather than through natural market development. These views inform his ongoing analysis of monetary policy dynamics.
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