A Theoretical Framework for Monetary Analysis

  title={A Theoretical Framework for Monetary Analysis},
  author={Milton Friedman},
  journal={Journal of Political Economy},
  pages={193 - 238}
  • M. Friedman
  • Published 1 March 1970
  • Economics
  • Journal of Political Economy
Every empirical study rests on a theoretical framework, on a set of tentative hypotheses that the evidence is designed to test or to adumbrate. It may help the reader of the series of monographs on money that Anna J. Schwartz and I have been writing to set out explicitly the general theoretical framework that underlies them.1 That framework is the quantity theory of money-a theory that has taken many different forms and traces back to the very beginning of systematic thinking about economic… 
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