Who would be a monetarist these days? Most monetary policy types are scrambling to re-estimate behavioural relationships.
And then there are the window-dressing operations, which are now revealed to have been exceptionally large in Ireland around the time the Government had to rescue the banks at end-September 2008.
No wonder it is hard to make sense of deposit and monetary movements at that time. In a footnote at my paper in the crisis conference I was reduced to hand-waving: “It is striking that these events have not left a very prominent track on the monetary aggregates. The evidence of a cash crunch at end-September is very muted…though of course we do not have day-by-day figures for the last week in September).”
Now we begin to know why.