publication . Article . 1998

Retrospectives: Was the Monetarist Tradition Invented?

George S Tavlas;
Open Access
  • Published: 01 Jan 1998 Journal: Journal of Economic Perspectives, volume 12, issue 4 Fall, pages 211-222
Abstract
In 1969, Harry Johnson charged that Milton Friedman 'invented' a Chicago oral quantity theory tradition, the idea being that in order to launch a monetarist counter-revolution, Friedman needed to establish a linkage with pre-Keynesian orthodoxy. This paper shows that there was a distinct pre-Keynesian Chicago quantity-theory tradition that advocated increased government expenditure during the Great Depression in order to put money directly into circulation. This policy stance distinguished the Chicago economists from other quantity theorists, leaving them less susceptible to the Keynesian revolution. Those who have been critical of Friedman's claim that his work...
Subjects
free text keywords: jel:B22, jel:E50, Economics and Econometrics, Monetary policy, Classical economics, Keynesian Revolution, Quantity theory of money, Finance, business.industry, business, Orthodoxy, media_common.quotation_subject, media_common, Economics, Keynesian economics, Monetarism, Government expenditure, Great Depression
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