CZIn August 2026, three prominent economists, Peter Ireland, Stephen Miran, and Nouriel Roubini, published a paper advocating for 'soft monetarism' as a potential framework for guiding the Federal Reserve's approach to inflation. The paper aims to influence Kevin Warsh, the newly appointed Fed chair, who had previously studied under Milton Friedman at Stanford. The authors argue for reviving aspects of Friedman's monetarist doctrine, which emphasizes controlling the money supply, though they present it using modern tools like the Divisia index. However, the article notes that the quantity theory of money has historically faced challenges, and these issues remain unresolved.
Bias read (Center): The article presents the debate over monetarism in a balanced manner, discussing both the proposed revival of the theory and historical criticisms against it. It does not favor one side over the other and provides context about the individuals involved and their arguments without overtly endorsing a
