What Was the Message of Friedman's Presidential Address to the American Economic Association?
31 Pages Posted: 14 Dec 2016 Last revised: 22 Dec 2016
Date Written: December 12, 2016
It is widely accepted that the importance of Friedman’s Presidential Address to the American Economic Association lies in its criticism of policy based on the Phillips curve. However, it is argued that a reading of the text does not support such a view, and this and other considerations suggest that any such aim was far from Friedman’s mind in 1968. His objective was the quite different one of making a case for policy ‘rules’ rather than discretion.
Keywords: Milton Friedman; rules and discretion; expectations; Phillips curve
JEL Classification: B22, B31, E58
Suggested Citation: Suggested Citation