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An initial 'Keynesian illness'? Friedman on taxation and the inflationary gap

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  • Levrero, Enrico Sergio

Abstract

This paper examines Friedman’s writings in the years 1941-1943 and compares them with those after the war with a view to assessing differences and similarities. Albeit a first assessment, Friedman’s “Keynesian illness” in his ‘Washington phase’ will appear to have been less ‘serious’ and deep than he himself feared.

Suggested Citation

  • Levrero, Enrico Sergio, 2015. "An initial 'Keynesian illness'? Friedman on taxation and the inflationary gap," MPRA Paper 68547, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:68547
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    References listed on IDEAS

    as
    1. George S. Tavlas, 1998. "Was the Monetarist Tradition Invented?," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 211-222, Fall.
    2. Milton Friedman, 1947. "Lerner on the Economics of Control," Journal of Political Economy, University of Chicago Press, vol. 55(5), pages 405-405.
    3. A. Smithies, 1942. "The Behavior of Money National Income Under Inflationary Conditions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 57(1), pages 113-128.
    4. Henry C. Simons, 1936. "Rules versus Authorities in Monetary Policy," Journal of Political Economy, University of Chicago Press, vol. 44(1), pages 1-1.
    5. 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.
    6. Pierangelo Garegnani, 2024. "Notes on Consumption, Investment and Effective Demand: II," Springer Studies in the History of Economic Thought, in: Roberto Ciccone (ed.), Capital Theory, the Surplus Approach, and Effective Demand, pages 411-434, Springer.
    7. Patinkin, Don, 1969. "The Chicago Tradition, the Quantity Theory, and Friedman," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 46-70, February.
    8. William Leonard Crum & John F. Fennelly & Lawrence Howard Seltzer, 1942. "Fiscal Planning for Total War," NBER Books, National Bureau of Economic Research, Inc, number crum42-1.
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    10. Henry C. Simons, 1942. "Hansen on Fiscal Policy," Journal of Political Economy, University of Chicago Press, vol. 50(2), pages 161-161.
    11. Laidler,David, 1999. "Fabricating the Keynesian Revolution," Cambridge Books, Cambridge University Press, number 9780521641739, January.
    12. repec:ucp:bkecon:9780226264141 is not listed on IDEAS
    13. Milton Friedman, 1935. "Professor Pigou's Method for Measuring Elasticities of Demand from Budgetary Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 50(1), pages 151-163.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Friedman; inflationary gap; price inflation; spending tax; quantity theory of money;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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