Self-Recommending

PBS has a forthcoming special entitled, “Testing Milton Friedman” due to premier later this year. Here is a preview and here is a list of participants in the debate.

2 responses to “Self-Recommending

  1. My Austrian friends have asked on several occasions, “How could Friedman have been so right about so many things, but get it so wrong when it comes to monetary policy?” I’m not a macro person so I’m still deciphering the meaning of this question.

  2. Friedman mixed too much politics with his economics to suit me.

    Apart from that, we have his graphs. His graphs that show similarity between “the quantity of money relative to output” and the price level. The graphs that we think of as evidence.

    Friedman faked those graphs. He used “real” output in the denominator. But real output cannot be measured. It must be calculated from actual-price output, by dividing the inflation out of it.

    Dividing the denominator of a ratio by the price level is mathematically identical to multiplying the ratio by the price level. This is what Friedman did. He factored the price level into his results. His graphs are not evidence. His graphs are just bad arithmetic.

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