Hicks was never tired of saying that monetary theory is in history. What he meant was that monetary theory is intrinsically related to real events, and more importantly that monetary issues need to be analysed in a dynamic sequential context in which time plays an essential part. He went on...

One of the more debated interpretations of the economic crisis that started in 2007–08 is based on the 'Taylor rule' equation, namely the idea that over the period 2002–05 the Fed has implemented a low-interest policy that has led to the housing bubble and finally to the 'Great Recession'....