Monetarist Arithmetic (Sargent & Wallace)

Some unpleasant monetarist arithmetic by Thomas J. Sargent and Neil Wallace. “The purpose of this paper is to argue that, even in an economy that satisfies monetarist assumptions, if monetary policy is interpreted as open market operations, then Friedman´s list of the things that monetary policy cannot permanently control may have to be expanded to include inflation.” Thomas J. Sargen has a web page with his material in  –