Milton Friedman's main argument in the article "The Fed's Thermostat" is that the Federal Reserve has performed poorly in the attempt to control inflation. The ... the monetary growth per unit of output. But since that time, the Fed has controlled the money supply in a way to offset changes in output and velocity. Friedman believes Alan Greenspan was the new thermostat in the economy. His ideas of controlling inflation are unattainable. Many central banks adopted a policy of inflation targeting which specified ... a small target range for inflation. But this did nothing to control inflation....

• Word Count: 1182
• Approx Pages: 5

... Theory of Interest, Money, and Employment in 1936, he blamed the depression on the loss of business confidence that impaired investment spending. Nobel Laureat and University of Chicago emeritus economist Milton Friedman and his collaborator, Anna Schwartz, in A Monetary History of the United States, 1867 - 1960 also emphasize the role of Federal Reserve policy and the impact of specific monetary shocks to ... ...

• Word Count: 1109
• Approx Pages: 4
• Grade Level: Undergraduate