Economics Questions

Re: Milton Friedman and ABCT

Pike — Sat, 11 Jul 2009 05:05:26 GMT

What kind of evidence monetarists look for? In this recession you had cheap money from FED, that money inflated real estate bubble, whan bum turn into bust all that malinvestments where exposed and you have a recession. From monetarists point of view what evidence is lacking here?

xahrx:

Is it a book or article, do you have a link ?

Re: Milton Friedman and ABCT

xahrx — Thu, 09 Jul 2009 15:13:31 GMT

You might want to look up Joe Salerno's response to critics of Rothbard's book on The Great Depression. While not specific to Friedman, it summarizes and deal with monetarist critiques of ABCT pretty well in the context of TGD.

Re: Milton Friedman and ABCT

krazy kaju — Thu, 09 Jul 2009 15:01:04 GMT

Friedman was a positivist. He justified his position by saying that there is no empirical evidence for ABCT.

Re: Milton Friedman and ABCT

Pike — Thu, 09 Jul 2009 11:54:02 GMT

That's what looks strange to me. He usually makes very good and tough arguments and than on ABCT just "It is, I believe, false". It is even a contradictory with his position wanting to abolish FED, if boom-bust cycles happened unpredictably than we need central bank to "fix it".

Re: Milton Friedman and ABCT

Wilmot of Rochester — Wed, 08 Jul 2009 00:06:55 GMT

Pike:

Hi,

Why did Friedman believed ABCT was wrong? What were his arguments? In what examples did he find it wrong?

According to Lawrence White.

Re: Milton Friedman and ABCT

Rooster — Tue, 07 Jul 2009 19:26:17 GMT

As far as I know, he didn't specifically address it, as most economists don't, but someone correct me if I'm wrong. Roger Garrison has some good stuff discussing Friedman. Essentially Friedman dealt with aggregates so his analysis inevitably left out what Austrians are talking about.

Milton Friedman and ABCT

Pike — Tue, 07 Jul 2009 17:15:39 GMT

Hi,

Why did Friedman believed ABCT was wrong? What were his arguments? In what examples did he find it wrong?