Three centuries of events, episodes, and policy controversies reveal that certain classical theories of monetary policy have outperformed other theories whose superficial, albeit fallacious, logic makes them perennially popular with the general public, politicians, and even some policymakers....

Not the least of inflation's consequences is the damage done to the reputations of certain prominent economists. A case in point is John Maynard Keynes (1883-1946). Once highly regarded for his brilliant pathbreaking analysis of the causes of mass unemployment in the Great Depression of the...