# The Barnett Critique

^{1}

^{2}

^{*}

## Definition

**:**

## 1. History

#### 1.1. A Competition

#### 1.2. Results of the Competition

## 2. Reconsideration of the Competition Results

## 3. The High Road versus the Low Road

#### 3.1. Implications of the Low Road

#### 3.2. Policy Errors

## 4. Index Number Theory

#### The Divisia Monetary Aggregates

_{t}is the risk-free rate of return on a completely illiquid asset (benchmark rate on pure capital) during period t. The Divisia index in growth rate form in continuous time is

## 5. Credit-Card Augmented Divisia Monetary Aggregates

#### 5.1. Demand-Side Formula

**m**

_{t},

**c**

_{t}), is the share-weighted average of the growth rates of the components. The credit card quantities to include in the augmented Divisia index formula are the monthly credit card transactions volumes, not the credit card balances, which include rotating balances from previous period transactions.

#### 5.2. Supply Side

## 6. Recent Literature

## 7. Conclusions

## Author Contributions

## Funding

## Conflicts of Interest

## Entry Link on the Encyclopedia Platform

## References

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**Figure 1.**Monthly percentage growth rates of simple sum M2 and Divisia M4. Source: Federal Reserve Economic Data (Simple sum M2), Center for Financial Stability (Divisia M4).

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Barnett, W.A.; Park, H.; Park, S.
The Barnett Critique. *Encyclopedia* **2021**, *1*, 964-973.
https://doi.org/10.3390/encyclopedia1030073

**AMA Style**

Barnett WA, Park H, Park S.
The Barnett Critique. *Encyclopedia*. 2021; 1(3):964-973.
https://doi.org/10.3390/encyclopedia1030073

**Chicago/Turabian Style**

Barnett, William A., Hyun Park, and Sohee Park.
2021. "The Barnett Critique" *Encyclopedia* 1, no. 3: 964-973.
https://doi.org/10.3390/encyclopedia1030073