Date of Original Version



Conference Proceeding

Abstract or Description

As I listen to this debate, and it seems to have gone on for a long time, I notice that people take various positions. One is that Milton Friedman is completely wrong; another is that Friedman is almost completely wrong. A third is that there is a grain of truth to what Friedman says, but it is not very important; and, therefore, fiscal policy matters far more than the so-called monetarists say. Always, there is a subtle suggestion that some of us know a great deal more about the way in which the economic system operates than we have time to tell. If the argument and evidence could be presented, everyone could see that there is a considerable amount of evidence available showing the sizable effect of fiscal policy operations and supporting some very detailed econometric model of the economy.


Presented at Controlling Monetary Aggregates, a conference on that topic sponsored by the Federal Reserve Bank of Boston in June of 1969.