Another entry in figuring out what the late monetary scholar Milton Friedman, the Nobel laureate, would have done in response to the global financial crisis comes from Edward Nelson, chief of the monetary studies section of the Fed's monetary affairs division.
Like several others – and in contrast to Friedman's collaborator, Anna Schwartz, Nelson concludes “in important respects, the overall monetary and financial policy response to the crisis can be viewed as Friedman's monetary economics in practice.”
“To be sure,” he writes in a Fed working paper, “no one should have the effrontery to claim toknow what Friedman, who died in November 2006, would have prescribed had he been alive to witness events since August 2007. But Friedman's vast quantity of writings and public statements on monetary and financial matters does yield extensive information about his views on issues that have come up in recent years.”
MySpace
Digg
del.icio.us
StumbleUpon
Error message
No sorry, Friedman’s message was much clearer than that: You make money when there is a shortage otherwise it causes inflation. In 1930-33 there was a shortgage of money because banks went under. There was no shortage in the 70′s and there was none in 2008 and certainly not today. Friedman would say no to the Fed.
Try to separate business, banking, people and the Fed into four corners. He was talking about the increase in M2 but how it was going to be increased or even stabilized. The second message was on inflation of the 80′s. Remember, inflation is the high water level; it always exists in the pond when not when there is water in the pond but when is there just a pond. Today, I am still looking for the inflation, many are pointing to oil; the FED must point to Congress; Congress must point to the Balance Budget; the Balance Budget must point to taxes; taxes must point to spending; spending must point to borrowing; borrowing must point to people (sacrilege); the people must point to the government; then the government will be pointing will go back to the FED. Actually the faster the pointing goes, the faster the inflation movement is. Respect and Self-Respect for all is the best means of controlling inflation without killing the economy. People, in this equation, have the greatest force of movement.
paofpa
I got to agree with Publius on the fact that there have been huge unfunded entitlements added to the public debt, like the 700 billion dollar TARP handouts to the fraudster banks. Oh wait, that was started by a Republican president, not the current Marxist one. Maybe it does not matter who is president as long as the bankers own the government.
Friedman would have been utterly dismayed that the nation elected an outright Marxist who talks openly of redistribution of wealth, ignores laws to favor union friends, appoints “wise Latinas” to the Supreme Court, adds a giant unfunded entitlement to the pile that already exists, signs a regulatory takeover of 17% of the economy that no single person has read in its entirety, appoints an outright racist for attorney general, has a lunatic spiritual leader, believes ATMs destroy jobs, thinks that this year is 2008 etc etc.
I look forward to reading the working paper cited in this blog post. As for what would Milton Friedman would have done…there is another extensive collection of Friedman’s works in his “Free to Choose” book and television series of 1980. Based upon his comments in this television series, I don’t think that he would be wholly supportive of the actions that have been taken since 2007; in fact, I think he might even be against many of them, especially on the fiscal policy side.
I put together a list of the “Free to Choose” television series links -10 hours which are available via Google Video; here is the blog post where they can be found:
http://economicgreenfield.blogspot.com/2011/02/milton-friedman-free-to-choose-videos.html
Subscriber Content Read Preview
Subscriber Content Read Preview
Subscriber Content Read Preview
Subscriber Content Read Preview
Real Time Economics offers exclusive news, analysis and commentary on the economy, Federal Reserve policy and economics. The Wall Street Journal’s Phil Izzo and Sudeep Reddy are the lead writers, with contributions from other Journal reporters and editors. Send news items, comments and questions to realtimeeconomics@wsj.com.
Read more Economics coverage.
Another entry in figuring out what the late monetary scholar Milton Friedman, the Nobel laureate, would have done in response to the global financial crisis comes from Edward Nelson, chief of the monetary studies section of the Fed's monetary affairs division.
Like several others – and in contrast to Friedman's collaborator, Anna Schwartz, Nelson concludes “in important respects, the overall monetary and financial policy response to the crisis can be viewed as Friedman's monetary economics in practice.”
“To be sure,” he writes in a Fed working paper, “no one should have the effrontery to claim toknow what Friedman, who died in November 2006, would have prescribed had he been alive to witness events since August 2007. But Friedman's vast quantity of writings and public statements on monetary and financial matters does yield extensive information about his views on issues that have come up in recent years.”
MySpace
Digg
del.icio.us
StumbleUpon
Error message
No sorry, Friedman’s message was much clearer than that: You make money when there is a shortage otherwise it causes inflation. In 1930-33 there was a shortgage of money because banks went under. There was no shortage in the 70′s and there was none in 2008 and certainly not today. Friedman would say no to the Fed.
Try to separate business, banking, people and the Fed into four corners. He was talking about the increase in M2 but how it was going to be increased or even stabilized. The second message was on inflation of the 80′s. Remember, inflation is the high water level; it always exists in the pond when not when there is water in the pond but when is there just a pond. Today, I am still looking for the inflation, many are pointing to oil; the FED must point to Congress; Congress must point to the Balance Budget; the Balance Budget must point to taxes; taxes must point to spending; spending must point to borrowing; borrowing must point to people (sacrilege); the people must point to the government; then the government will be pointing will go back to the FED. Actually the faster the pointing goes, the faster the inflation movement is. Respect and Self-Respect for all is the best means of controlling inflation without killing the economy. People, in this equation, have the greatest force of movement.
paofpa
I got to agree with Publius on the fact that there have been huge unfunded entitlements added to the public debt, like the 700 billion dollar TARP handouts to the fraudster banks. Oh wait, that was started by a Republican president, not the current Marxist one. Maybe it does not matter who is president as long as the bankers own the government.
Friedman would have been utterly dismayed that the nation elected an outright Marxist who talks openly of redistribution of wealth, ignores laws to favor union friends, appoints “wise Latinas” to the Supreme Court, adds a giant unfunded entitlement to the pile that already exists, signs a regulatory takeover of 17% of the economy that no single person has read in its entirety, appoints an outright racist for attorney general, has a lunatic spiritual leader, believes ATMs destroy jobs, thinks that this year is 2008 etc etc.
I look forward to reading the working paper cited in this blog post. As for what would Milton Friedman would have done…there is another extensive collection of Friedman’s works in his “Free to Choose” book and television series of 1980. Based upon his comments in this television series, I don’t think that he would be wholly supportive of the actions that have been taken since 2007; in fact, I think he might even be against many of them, especially on the fiscal policy side.
I put together a list of the “Free to Choose” television series links -10 hours which are available via Google Video; here is the blog post where they can be found:
http://economicgreenfield.blogspot.com/2011/02/milton-friedman-free-to-choose-videos.html
Subscriber Content Read Preview
Subscriber Content Read Preview
Subscriber Content Read Preview
Subscriber Content Read Preview
Real Time Economics offers exclusive news, analysis and commentary on the economy, Federal Reserve policy and economics. The Wall Street Journal’s Phil Izzo and Sudeep Reddy are the lead writers, with contributions from other Journal reporters and editors. Send news items, comments and questions to realtimeeconomics@wsj.com.
Read more Economics coverage.
Another entry in figuring out what the late monetary scholar Milton Friedman, the Nobel laureate, would have done in response to the global financial crisis comes from Edward Nelson, chief of the monetary studies section of the Fed's monetary affairs division.
Read Full Article »