Cutting-Edge Macro of 1829 Watch: I Really Don't Think That Stephen Williamson Quite Gets It...

He writes:

New Monetarist Economics: New Keynesians and New Monetarists: What's the difference between a New Keynesian and a New Monetarist? This sounds like I'm leading off to tell a joke (a duck walks into a bar...), but I'm not. A New Keynesian thinks that the real interest rate is too high, while a New Monetarist thinks the real interest rate is too low. In New Keynesian theory, the basic idea is that the key inefficiency that monetary policy should be correcting arises from the...