Milton Friedman and U.S. Monetary History: 1961-2006

  title={Milton Friedman and U.S. Monetary History: 1961-2006},
  author={Edward Nelson},
  journal={Monetary Economics eJournal},
  • Edward Nelson
  • Published 1 March 2007
  • Economics
  • Monetary Economics eJournal
This paper brings together, using extensive archival material from several countries, scattered information about Milton Friedman’s views and predictions regarding U.S. monetary policy developments after 1960 (i.e., the period beyond that covered by his and Anna Schwartz’s Monetary History of the United States). I evaluate these interpretations and predictions in light of subsequent events. 

Milton Friedman and U.K. Economic Policy: 1938-1979

This paper analyzes the interaction of Milton Friedman and U.K. economic policy from 1938 to 1979. The period under study is separated into 1938-1946, 1946-1959, 1959-1970, and 1970-1979. For each of

In Old Chicago: Simons, Friedman and the Development of Monetary-Policy Rules

  • G. Tavlas
  • Economics
    SSRN Electronic Journal
  • 2014
This paper examines the different policy rules proposed by Henry Simons, who, beginning in the mid-1930s, advocated a price-level stabilization rule, and by Milton Friedman, who, beginning in the

Milton Friedman and the Debate on Indexation

In the mid-1970s, Milton Friedman set off a debate in the United States on the merits of widespread indexation to inflation. The analysis in this paper puts this indexation debate in the context of

Milton Friedman's Contributions to Macroeconomics and Their Influence

Milton Friedman's contributions to and influence on macroeconomics are discussed, beginning with his work on the consumption function and the demand for money, not to mention monetary history, which


This paper examines the influence of Irving Fisher’s writings on Milton Friedman’s work in monetary economics. We focus first on Fisher’s influences in monetary theory (the quantity theory of money,

Evolving views on monetary policy in the thought of Hayek, Friedman, and Buchanan

Attempting to find the technically optimal monetary policy is futile if the Federal Reserve’s independence is undermined by political influences. F. A. Hayek, Milton Friedman, and James Buchanan each

Evolving views on monetary policy in the thought of Hayek, Friedman, and Buchanan

Attempting to find the technically optimal monetary policy is futile if the Federal Reserve’s independence is undermined by political influences. F. A. Hayek, Milton Friedman, and James Buchanan each

Milton Friedman, the Demand for Money and the ECB’s Monetary-Policy Strategy

The European Central Bank (ECB) assigns a greater weight to the role of money in its monetary-policy strategy than most, if not all, other major central banks. Nevertheless, reflecting the view that

Interest Rates and Money in the Measurement of Monetary Policy

Over the last 25 years, a set of influential studies has placed interest rates at the heart of analyses that interpret and evaluate monetary policies. In light of this work, the Federal Reserve's

The Law of Monetary Policy

Towards the end of 2007 and the beginning of 2008, the Federal Reserve began using — or reviving — innovative tools for providing liquidity to the financial markets. This paper examines the types of



Lessons from the 1979-1982 Monetary Policy Experiment

The experience of U.S. monetary policy during 1979-82 provided useful and potentially important new evidence about how monetary policy affects economic activity. This paper considers, inthe light of

A Monetary History of the United States, 1867-1960.

Writing in the June 1965 issue of theEconomic Journal, Harry G. Johnson begins with a sentence seemingly calibrated to the scale of the book he set himself to review: "The long-awaited monetary

A historical perspective on the Federal Reserve's monetary aggregates

Data on the monetary aggregates are the fundamental raw material for research in many facets of economics and finance. Money demand modeling, measurement of money stock announcement effects, tests of

Output Fluctuations in the United States: What Has Changed Since the Early 1980s?

We document a structural break in the volatility of U.S. GDP growth in the first quarter of 1984, and provide evidence that this break emanates from a reduction in the volatility of durable goods

Monetary Trends in the United States and the United Kingdom

Editor’s Introduction Originally published in Volume 16, Number 1, Spring 1972, pages 4-17. At the 1971 annual conference of the American Economic Association, Milton Friedman (1912-2006) delivered

The Road to Price Stability

Nearly a quarter-century after Paul Volcker's declaration of war on inflation on October 6, 1979, Alan Greenspan declared that the goal had been achieved. Drawing on the extensive historical record,

Nobel Lecture: Inflation and Unemployment

In the past several decades, professional views on the relation between inflation and unemployment have gone through two stages and are now entering a third. The first was the acceptance of a stable

Letter on Monetary Policy

The following letter by Professor Milton Friedman, Department of Economics, University of Chicago, was written in response to a letter by Arthur F. Burns, Chairman of the Board of Governors of the

The Success of the Fed and the Death of Monetarism

We propose an explanation for the demise of monetarism in the United States. We show that optimal monetary policy would lead to zero correlation between monetary aggregates and inflation if the

The Long and Large Decline in U.S. Output Volatility

The last two U.S. expansions have been unusually long. One view is that this is the result of luck, of an absence of major adverse shocks over the last twenty years. We argue that more is at work,