For 10 points, name this American economist whose Theory of Interest forms the basis for Monetarist macroeconomics.
A concept first proposed by this economist and elaborated by Kiyotaki and Moore explains how credit market imperfections lead to sudden, asymmetrical declines in asset prices. This economist argued that agents are forced to sell assets in order to pay off debt, thus flooding the market for those assets, reducing their price and thus the price of assets remaining on their balance sheet and further tightening the credit constraint in a vicious cycle. That process of "debt deflation" was posited by this economist after he lost all of his wealth in the 1929 stock market crash. Earlier, this economist had proposed the core tenets of the quantity theory of money: the quantity equation, which links the price level directly to the money supply, and an eponymous equation which states that the equilibrium real interest rate is equal to the nominal interest rate net of inflation. For 10 points, name this American economist whose Theory of Interest forms the basis for Monetarist macroeconomics.
A concept first proposed by this economist and elaborated by Kiyotaki and Moore explains how credit market imperfections lead to sudden, asymmetrical declines in asset prices.
Irving Fisher