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Institutions, Policy, and Monetary Analysis

Karl Brunner

Journal of Political Economy 1965

The book by Milton Friedman and Anna Schwartz 'A monetary history of the United States, 1867-1960' (Princeton Univ. Press, 1963) is reviewed. The review is divided as follows: (1) Money-supply theory: base, multiplier, and money stock; reserve ratio and currency ratio; explanation of the base. (2) Velocity theory: breakdown of the permanent-income hypothesis of velocity; search for an explanation; case against 'the case against interest rates'; case for interest rates. (3) Monetary policy.

DOI
10.1086/259010
Volume
73 (2)
Pages
197-218
Language
en
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