Wednesday, 18 October 2017

Milton Friedman

The Inflation Tax

Posted by Jerry Jordan
July 20, 2017
in Blog

Can you name an official at a major central bank who expresses worries that inflation is now, or soon will be, too high?  Can you identify any financial publication–even the Wall Street Journal–that does not report that recent inflation data have been “disappointing?” To paraphrase former President Nixon, are we “all inflationists now?” Twenty years […]

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A Cure for What Ails Us

Posted by Gonzalo Schwarz
June 12, 2012
in Blog

It is not enough to encourage enterprise and limit regulation—we need a fixed system of value. By James Grant Bailouts, bear markets and joblessness will surely put capitalism on the November ballot. How do you like your enterprise, Mr. and Ms. American Voter—free or stifled or a little something in between? The 2012 election promises […]

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When Low Inflation is Too High

Posted by Tyler Watts
May 2, 2011
in Blog

Milton Friedman famously stated, “Inflation is always and everywhere a monetary phenomenon.” In other words, whenever you see persistent, high inflation, you know the cause was too much money. When too much money is chasing the same amount of goods, as they say, prices tend to rise; the faster the money supply is increased, the […]

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Where Did the Free Banking Debate Go?

March 31, 2011
in Blog

The discussion in monetary institutions is becoming increasingly relevant in economics. How to deal and avoid financial crisis is an important issue. The recent financial crisis showed that economics might not be as suited to foresee and deal with these problems as the theory seems to suggest. This analysis requires a benchmark in the same […]

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The Legacy of Milton Friedman – Ben Bernanke

Posted by Tom Duncan
March 10, 2011
in Blog

“Friedman’s emphasis on avoiding monetary disruptions arose, like many of his other ideas, from his study of U.S. monetary history. He had observed that, in many episodes, the actions of the monetary authorities, despite possibly good intentions, actively destabilized the economy. The leading case, of course, was the Great Depression, or as Friedman and Schwartz […]

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Was Gold Standard too Expensive?

March 3, 2011
in Blog

There are two main reasons usually mentioned to prefer fiat money over gold standard. One is that fiat money offers more flexibility to do fine tuning on the economy and also central banks will have their hand free if they need to go into a monetary stimulus. The other reason is that a regime of […]

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“Same Old Song and Dance” – FEE

Posted by Tom Duncan
February 28, 2011
in Blog

“Friedman, as with the other papers that day, found inflation to be a massive problem. In fact, next to the threat of a third world war, inflation is what he finds to be the most serious threat to the preservation of a free society. Friedman believed the source of inflationary pressure mainly stemmed from calls […]

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“Making Sense of the Controversy” – FEE

Posted by Tom Duncan
February 25, 2011
in Blog

“The Foundation for Economic Education’s goal from the very beginning was to promote, what Leonard E. Read called, the freedom philosophy. Understanding the principles of economics is a crucial step to understanding why freedom works. The tools of economics can illustrate why many policies have the opposite effect of their stated goals. This is exactly […]

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No Doubt Ben Bernanke Is Sincere, But What If He Is Sincerely Wrong?

Posted by Tom Duncan
December 7, 2010
in Blog

“As you no doubt know, Ben Bernanke gave an interview tonight on CBS 60 Minutes. Let me stress once again, as I have in the past, that I consider Ben Bernanke one of the most genuinely nice guys among elite economist I have had the good fortunate to meet. He has no reason to remember […]

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“The Dance of the Dollar” – Steve Hanke

Posted by Tom Duncan
November 30, 2010
in Blog

“The dance of the dollar counts — and it counts a lot. With few exceptions, when the dollar weakens against the euro, commodity prices soar, and when the dollar soars against the euro, commodity prices plunge. Every commodity trader knows the importance of the dance of the dollar. Indeed, commodity traders know that, when the […]

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I’ll Side With Mises: Would Friedman’s Logic Lead Us to QE2? – Peter Boettke

Posted by Tom Duncan
November 3, 2010
in Blog

“For some of the reasons that have been supported here by Steve and George, a WSJ editoral argues that Milton Friedman’s monetary policy analysis could be used to defend QE2 in our current economic context. I remain unpersuaded that any of these arguments for QE have the upper-hand either analytically or political economy wise. Part […]

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Money Mischief: Episodes in Monetary History

Posted by Tom Duncan
September 29, 2010
in Blog

“Nobel Prize-winner Milton Friedman — dubbed ‘the Oliver Stone of economists’ by the Chicago Tribune — makes clear once and for all that no one, from the local corner merchant to the Wall Street banker to the president of the United States, is immune from monetary economics. In Money Mischief, Friedman discusses the creation of […]

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“The Lag in Effect of Monetary Policy”

Posted by Tom Duncan
September 29, 2010
in Blog

“First, discretionary policy at times tends to be dominated by goals other than, and even contradictory to, stabilization (for example, pegging bonds yields, halting gold outflows), whereas the automatic framework cannot be so readily exploited for other purposes. Second, the inertia and the political considerations referred to above that inhibit the ready reversal of discretionary […]

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A Conversation with Milton Friedman – Liberty Fund

Posted by Tom Duncan
July 30, 2010
in Blog

“Milton Friedman discusses his economic ideas with Gary S. Becker. Recipient of the 1976 Nobel Memorial Prize in Economics, Milton Friedman has long been recognized as one of our most important economic thinkers, and a leader of the Chicago school of monetary economics. A senior research fellow at the Hoover Institution since 1977, he is […]

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“Some Unpleasant Monetarist Arithmetic”

Posted by Tom Duncan
July 22, 2010
in Blog

“In his presidential address to the American Economic Association (AEA), Milton Friedman (1968) warned not to expect too much from monetary policy. In particular, Friedman argued that monetary policy could not permanently influence the levels of real output, unemployment, or real rates of return on securities. However, Friedman did assert that a monetary authority could […]

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“The Role of Monetary Policy”

Posted by Tom Duncan
June 23, 2010
in Blog

“There is wide agreement about the major goals of economic policy: high employment, stable prices, and rapid growth. There is less agree-ment that these goals are mutually compatible or, among those who re-gard them as incompatible, about the terms at which they can and should be substituted for one another. There is least agreement about […]

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“The Great Depression According to Milton Friedman”

Posted by Tom Duncan
June 16, 2010
in Blog

“Few events in U.S. history can rival the Great Depression for its impact. The period from 1929 to 1941 saw fundamental changes in the landscape of American politics and economics, including such monumental events as America ’s going off the gold standard and the founding of Social Security. It was a watershed for the growth […]

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