I couldn't find an answer for this. I don't know if it is from Milton Friedman himself or is it a general theory that 2-3% is "good for the economy." There are many parties in an econnomy so the question it is good for whom exactly? What is the thesis and antithesis of this theory?
Austrians blame the Great Depression on the inflation created by the Federal reserve during the 1920s and how that fueled the bussiness cycle. Milton Friedman blames it on the collapse of the money supply during the 1930s. Could both be right? It seems like the decline of the m3 money supply by one third...