Jennifer Burns

Now, Friedman to some degree is left out in the cold, but Friedman at least has proved to the mathematical economists that he knows what they're up to and he's rejecting it from a position of expertise and knowledge. And he literally drives the mathematical economists out of Chicago. They're clustered in a group called the Coles Commission, and he makes their life hell. They flee.

They flee the Friedman onslaught. But then when Hayek arrives at the University of Chicago, he would like to be considered for a position in the economics department, and Milton Friedman says, no way. You're not really an economist because you're not empirical, because you just developed these theories. So he has an appreciation for Hayek as a social thinker, but not as an economist.

They flee the Friedman onslaught. But then when Hayek arrives at the University of Chicago, he would like to be considered for a position in the economics department, and Milton Friedman says, no way. You're not really an economist because you're not empirical, because you just developed these theories. So he has an appreciation for Hayek as a social thinker, but not as an economist.

They flee the Friedman onslaught. But then when Hayek arrives at the University of Chicago, he would like to be considered for a position in the economics department, and Milton Friedman says, no way. You're not really an economist because you're not empirical, because you just developed these theories. So he has an appreciation for Hayek as a social thinker, but not as an economist.

So what Friedman decides to do, his answer to Keynes will be deeply empirical, but it will also be theoretical. And it will create an alternative intellectual world and approach for economists who aren't satisfied with Keynesianism. And almost single-handedly, Friedman will introduce

So what Friedman decides to do, his answer to Keynes will be deeply empirical, but it will also be theoretical. And it will create an alternative intellectual world and approach for economists who aren't satisfied with Keynesianism. And almost single-handedly, Friedman will introduce

So what Friedman decides to do, his answer to Keynes will be deeply empirical, but it will also be theoretical. And it will create an alternative intellectual world and approach for economists who aren't satisfied with Keynesianism. And almost single-handedly, Friedman will introduce

political and ideological diversity into the field of economics, because from his beachhead in Chicago, he will develop the theory of monetarism. So what is monetarism? The easy way to summarize it is this famous dictum of Milton Friedman's, inflation is always and everywhere a monetary phenomenon. And

political and ideological diversity into the field of economics, because from his beachhead in Chicago, he will develop the theory of monetarism. So what is monetarism? The easy way to summarize it is this famous dictum of Milton Friedman's, inflation is always and everywhere a monetary phenomenon. And

political and ideological diversity into the field of economics, because from his beachhead in Chicago, he will develop the theory of monetarism. So what is monetarism? The easy way to summarize it is this famous dictum of Milton Friedman's, inflation is always and everywhere a monetary phenomenon. And

It's fascinating that he becomes an expert in inflation because the first research and the first major research product of monetarism is that theory of the Great Depression in a monetary history of the United States. And that is a theory of a deflation, all prices going down.

It's fascinating that he becomes an expert in inflation because the first research and the first major research product of monetarism is that theory of the Great Depression in a monetary history of the United States. And that is a theory of a deflation, all prices going down.

It's fascinating that he becomes an expert in inflation because the first research and the first major research product of monetarism is that theory of the Great Depression in a monetary history of the United States. And that is a theory of a deflation, all prices going down.

And he will go back to an idea that Irving Fisher had popularized, but a very old idea, almost a truism, the quantity theory of money. which says the level of the price level is related to the amount of money circulating in an economy. So if you have more money, prices go up. If you have less money, prices go down.

And he will go back to an idea that Irving Fisher had popularized, but a very old idea, almost a truism, the quantity theory of money. which says the level of the price level is related to the amount of money circulating in an economy. So if you have more money, prices go up. If you have less money, prices go down.

And he will go back to an idea that Irving Fisher had popularized, but a very old idea, almost a truism, the quantity theory of money. which says the level of the price level is related to the amount of money circulating in an economy. So if you have more money, prices go up. If you have less money, prices go down.

Now this seems like very basic and almost too basic to bear repeating, but Friedman is saying this very basic relationship holds true even in an advanced industrial economy. And that is what people have started to doubt. And if you think about money, you think about banks, you don't think necessarily about the federal budget spending and taxation.

Now this seems like very basic and almost too basic to bear repeating, but Friedman is saying this very basic relationship holds true even in an advanced industrial economy. And that is what people have started to doubt. And if you think about money, you think about banks, you don't think necessarily about the federal budget spending and taxation.

Now this seems like very basic and almost too basic to bear repeating, but Friedman is saying this very basic relationship holds true even in an advanced industrial economy. And that is what people have started to doubt. And if you think about money, you think about banks, you don't think necessarily about the federal budget spending and taxation.

And what you see happens in American economics, the textbooks previous to the Keynesian Revolution, they spent a lot of time on money. They spent a lot of time on interest rates. You can do word counts, and other scholars have done the word counts. And then word count for money after World War II just plummets. And you start seeing things like taxation, budget, those things go up.