Richard Goodwin

["RICHARD P.F. HOLT" <holtri@xxxxxxxxxxxxx>]

Because of good advise over this network about Richard Goodwin I've
started to read some of his writings. Recently I came across this statement
he made which I'm not quite sure I'm understanding him correctly:
He said, " [I] became convinced that trade cycles are not the result of
mismanagement by the monetary authorities ( a common opinion then, as it
is again now) simply because money supply responds endogenously to business
conditions rather than vice versa." It might be true that money supply or the
Fed responds to endogenous business conditions but if the Fed is *mismanaged*.
In other words led by an ideologue or misreads the business conditions then
it seems to me that monetary authorities can carry out policies that can have
an adverse effect on trade cycles. Am I missing the point that Goodwin is
making here?
-Ric Holt