Gustav Cassel on recessions
Swedish economist Gustav Cassel (1866-1945) had many views today is shared by Market Monetarism. I today was reminded by a Cassel quote that pretty much spells out the Market Monetarist view of the causes of recessions: "(Recessions) are essentially a result of a supply of money that is too small, and to that extent are monetary phenomena...Complaints about excessive habits of saving are in such circumstances calculated to confuse the mind of the public and to distract attention from the shortcomings of monetary policy." - Gustav Cassel, Theory of Social Economy, 1918. Cassel's quote is an explanation for the Great Depression as well as for the Great Recession. This is not the only area in which Market Monetarist can be inspired by and learn from Gustav Cassel. An obvious example is Gustav Cassel's views on the Great Depression.