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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.
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    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. Garegnani, Pierangelo, 1979. "Notes on Consumption, Investment and Effective Demand: II," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 3(1), pages 63-82, March.
    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. Pierangelo Garegnani, 2024. "Notes on Consumption, Investment and Effective Demand: II," Springer Studies in the History of Economic Thought,, Springer.
    9. 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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    11. Henry C. Simons, 1942. "Hansen on Fiscal Policy," Journal of Political Economy, University of Chicago Press, vol. 50(2), pages 161-161.
    12. Laidler,David, 1999. "Fabricating the Keynesian Revolution," Cambridge Books, Cambridge University Press, number 9780521641739, October.
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    14. 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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