Zygmunt Narski, Milton Friedman, and modern monetary policy

Abstract

This article explores contributions of Zygmunt Narski to monetary policy and his advocacy for monetarism. Narski’s ideas align with Friedman’s. Narski’s money growth rule predates Friedman’s rule. The article elaborates on their likely assessment of policy responses during the Global Financial crisis, the COVID-19 pandemic and the global energy crisis. Both economists would support quantitative easing and increasing deposit protection. Narski, influenced by childhood poverty and wartime trauma, would advocate for minimum wage increases, an enhanced role of the government, income redistribution, income policy, and strong fiscal stimulus—positions Friedman opposed. Friedman would also criticize the discretion in unconventional policy.