Arnold Kling on Modigliani-Miller and money

Arnold Kling recently posted on the implications of the Modigliani-Miller (M-M) theory of corporate finance for monetary economics. He seems to suggest that open market operations will not significantly affect the price level, even when interest rates are positive. (Although it’s possible I’ve misread his post): The metaphor that I would propose is that a … Continue reading Arnold Kling on Modigliani-Miller and money