Stuck on 1968
From my latest essay.
In 1968, Milton Friedman was on the fringe of respectability. His Presidential Address to the American Economic Association in 1967 could not have been more defiant of the conventional wisdom. At that time, economists thought that the economy could be “fine tuned” by government to achieve any desirable unemployment rate, with a “trade-off” that allegedly involved accepting higher inflation. Inflation, in turn, could be curbed by government action to control, or at least influence, the price- and wage-setting decisions of private firms…
Today, it is Milton Friedman’s views that are conventional wisdom, and the 1960’s Keynesians who are the jackasses.
In the essay, I quote from co-blogger Bryan Caplan’s new manuscript, which he hopes will appear in book from by the end of the year. Soon, perhaps later today, I will have some more posts about this important book.