Jennifer Burns

who have constituents who think the banks and money power are the problem, who are like throwbacks from the frontier days. So Friedman in the beginning has no constituency for this policy. He has no constituency for this analysis. And so just going back to summarize monetarism, it's using the quantity theory of money to analyze the macroeconomy.

who have constituents who think the banks and money power are the problem, who are like throwbacks from the frontier days. So Friedman in the beginning has no constituency for this policy. He has no constituency for this analysis. And so just going back to summarize monetarism, it's using the quantity theory of money to analyze the macroeconomy.

It's proposing a policy of slow and steady growth in the money supply. And then it is arguing that inflationary episodes, when they emerge, are profoundly driven by changes in the money supply, not by anything else.

It's proposing a policy of slow and steady growth in the money supply. And then it is arguing that inflationary episodes, when they emerge, are profoundly driven by changes in the money supply, not by anything else.

It's proposing a policy of slow and steady growth in the money supply. And then it is arguing that inflationary episodes, when they emerge, are profoundly driven by changes in the money supply, not by anything else.

Yeah. So, I mean, that's a fascinating story. And so what happens is Friedman has advanced all these ideas. He's roiled the economics profession. He's built a political profile. And then he becomes the head of the American Economics Association. And he is asked in that role to give a presidential address. And so he gives his presidential address, December 1967.

Yeah. So, I mean, that's a fascinating story. And so what happens is Friedman has advanced all these ideas. He's roiled the economics profession. He's built a political profile. And then he becomes the head of the American Economics Association. And he is asked in that role to give a presidential address. And so he gives his presidential address, December 1967.

Yeah. So, I mean, that's a fascinating story. And so what happens is Friedman has advanced all these ideas. He's roiled the economics profession. He's built a political profile. And then he becomes the head of the American Economics Association. And he is asked in that role to give a presidential address. And so he gives his presidential address, December 1967.

And he says, I'm going to talk about inflation. And I'm going to talk about the tradeoff between inflation and unemployment. And this is what's generally known as the Phillips curve. And the Phillips curve in its original form is derived of post-World War II data. So it's derived of about 12 years of data. And it shows that when inflation goes up, unemployment goes down.

And he says, I'm going to talk about inflation. And I'm going to talk about the tradeoff between inflation and unemployment. And this is what's generally known as the Phillips curve. And the Phillips curve in its original form is derived of post-World War II data. So it's derived of about 12 years of data. And it shows that when inflation goes up, unemployment goes down.

And he says, I'm going to talk about inflation. And I'm going to talk about the tradeoff between inflation and unemployment. And this is what's generally known as the Phillips curve. And the Phillips curve in its original form is derived of post-World War II data. So it's derived of about 12 years of data. And it shows that when inflation goes up, unemployment goes down.

And the idea would make sense that as the economy is heating up and lots of things are happening, more and more people are getting hired. And so this relationship has led policymakers to think that sometimes inflation is good. And if you want to lower unemployment, you could let inflation kind of go a little bit. And in accrued forms, it becomes to seem like a menu.

And the idea would make sense that as the economy is heating up and lots of things are happening, more and more people are getting hired. And so this relationship has led policymakers to think that sometimes inflation is good. And if you want to lower unemployment, you could let inflation kind of go a little bit. And in accrued forms, it becomes to seem like a menu.

And the idea would make sense that as the economy is heating up and lots of things are happening, more and more people are getting hired. And so this relationship has led policymakers to think that sometimes inflation is good. And if you want to lower unemployment, you could let inflation kind of go a little bit. And in accrued forms, it becomes to seem like a menu.

Like you could take your model and you could plug in, I want this much unemployment. And it would say, well, great, this is how much inflation you should do. And so then you would target that inflation rate. So Friedman gets up and he says, this is wrong. This might work in the short term, but it's not going to work in the long term because in the long term,

Like you could take your model and you could plug in, I want this much unemployment. And it would say, well, great, this is how much inflation you should do. And so then you would target that inflation rate. So Friedman gets up and he says, this is wrong. This might work in the short term, but it's not going to work in the long term because in the long term,

Like you could take your model and you could plug in, I want this much unemployment. And it would say, well, great, this is how much inflation you should do. And so then you would target that inflation rate. So Friedman gets up and he says, this is wrong. This might work in the short term, but it's not going to work in the long term because in the long term,

Inflation has, first of all, it has a momentum of its own. Once it gets going, it tends to build on itself. The accelerationist thesis, it accelerates. And once inflation gets going, And the reason it gets going is because, you know, workers go to the store and they see the price level has gone up. Things have cost more. They ask for the wages to go up.

Inflation has, first of all, it has a momentum of its own. Once it gets going, it tends to build on itself. The accelerationist thesis, it accelerates. And once inflation gets going, And the reason it gets going is because, you know, workers go to the store and they see the price level has gone up. Things have cost more. They ask for the wages to go up.

Inflation has, first of all, it has a momentum of its own. Once it gets going, it tends to build on itself. The accelerationist thesis, it accelerates. And once inflation gets going, And the reason it gets going is because, you know, workers go to the store and they see the price level has gone up. Things have cost more. They ask for the wages to go up.