Paul Krugman has a recent post on why monetarism failed. Subsequently a number of economics bloggers have replied with their views on monetarism. I don’t have time to summarize all of the viewpoints espoused in these posts, but a fundamental problem throughout these posts is that each author’s description of monetarism seems to be merely their opinion about the distinct characteristics of monetarism. The problem is that many of these opinions do not provide anyone with more than a surface-level view of monetarism (i.e. something one might find in a principles or intermediate macro textbook).
In reality, Old Monetarists not only had views on money and inflation, but also had important views on the monetary transmission mechanism. The role that Old Monetarists saw for money was much more nuanced than the crude quantity theory vision that is often attributed to them. On this note, it is probably more valuable to…
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Utopia, you are standing in it! 
Apr 17, 2016 @ 00:02:59
Monetarism failed because of de-regulation ironically and the demand for money was inherently unstable.
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Apr 18, 2016 @ 16:21:44
The correlation between a constant and a variable is zero.
If monetary growth becomes stable, the correlation between monetary variables and the rest of the economy will become zero. Alan Walters predicted this in the 1960s.
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