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Money Growth Has Slowed Sharply—Should Anybody Care?

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  • Tatom, John

Abstract

Milton Friedman, one of greatest economists of all time, died on November 16, 2006 at age 94. He was famous for his conclusion that “inflation is always and everywhere a monetary phenomenon,” and for the related notion that ultimately the only thing a central bank, such as the Federal Reserve System, can control is inflation, and not output, employment, interest rates or other items that politicians and other interest groups typically urge central banks to control. This article focuses on some of his more important ideas about money and monetary policy, both as a memorial and because his views remain controversial in their application, although not in their general acceptance.

Suggested Citation

  • Tatom, John, 2006. "Money Growth Has Slowed Sharply—Should Anybody Care?," MPRA Paper 17780, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17780
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    File URL: https://mpra.ub.uni-muenchen.de/17780/1/MPRA_paper_17780.pdf
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    References listed on IDEAS

    as
    1. Richard G. Anderson & Robert H. Rasche, 2001. "Retail sweep programs and bank reserves, 1994-1999," Review, Federal Reserve Bank of St. Louis, vol. 83(Jan), pages 51-72.
    2. repec:fip:fedgsq:y:2006:i:nov10 is not listed on IDEAS
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    Cited by:

    1. Tatom, John A., 2014. "U.S. monetary policy in disarray," Journal of Financial Stability, Elsevier, vol. 12(C), pages 47-58.
    2. Tatom, John, 2008. "Is the financial crisis causing a recession?," MPRA Paper 12712, University Library of Munich, Germany.

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    More about this item

    Keywords

    Business cycle; monetary policy; money growth;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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