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The Long and Unfinished Road to Friedman and Meiselman’s “The Relative Stability of Monetary Velocity and the Investment Multiplier”

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  • Tavlas, George S.

Abstract

Milton Friedman and David Meiselman’s 1963 article “The Relative Stability of Monetary Velocity and the Investment Multiplier in the United States, 1897-1958,” was one of the most influential studies to come out of the Keynesian-monetarist debates of the 1960s and 1970s. The gestation of the article, however, is shrouded with considerable inaccuracy and ambiguity. I use archival materials to provide a more accurate chronological ordering of the gestation of the article than has hitherto been available. I show that the gestation was subject to considerable delays. I provide reasons that explain why a long-promised follow-up paper was never completed and why a book sequel to Friedman’s 1956 Studies in the Quantity Theory of Money, planned as a co-edited work shortly after the appearance of the Friedman and Meiselman 1963 article, was not published until 1970 and was edited by Meiselman alone.

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  • Tavlas, George S., 2024. "The Long and Unfinished Road to Friedman and Meiselman’s “The Relative Stability of Monetary Velocity and the Investment Multiplier”," SocArXiv vq4ht, Center for Open Science.
    • Handle: RePEc:osf:socarx:vq4ht
    DOI: 10.31219/osf.io/vq4ht
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    1. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    2. de Leeuw, Frank & Gramlich, Edward M, 1969. "The Channels of Monetary Policy: A Further Report on the Federal Reserve-M.I.T. Model," Journal of Finance, American Finance Association, vol. 24(2), pages 265-290, May.
    3. Christopher A. Sims, 2012. "Statistical Modeling of Monetary Policy and Its Effects," American Economic Review, American Economic Association, vol. 102(4), pages 1187-1205, June.
    4. Milton Friedman & Anna J. Schwartz, 1982. "Monetary Trends in the United States and United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975," NBER Books, National Bureau of Economic Research, Inc, number frie82-2.
    5. George S Tavlas, 2019. "The intellectual origins of the monetarist counter-revolution reconsidered: how Clark Warburton influenced Milton Friedman’s monetary thinking," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 645-665.
    6. Milton Friedman & Anna Jacobson Schwartz, 1970. "Monetary Statistics of the United States: Estimates, Sources, Methods," NBER Books, National Bureau of Economic Research, Inc, number frie70-1.
    7. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    8. Hsiang-Ke Chao, 2003. "Milton Friedman and the Emergence of the Permanent Income Hypothesis," History of Political Economy, Duke University Press, vol. 35(1), pages 77-104, Spring.
    9. Milton Friedman & Anna Jacobson Schwartz, 1970. "Introduction to "Monetary Statistics of the United States: Estimates, Sources, Methods"," NBER Chapters, in: Monetary Statistics of the United States: Estimates, Sources, Methods, pages 1-85, National Bureau of Economic Research, Inc.
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