Wednesday, August 23, 2006

Milton Friedman likes Don Brash

Uber-economist Milton Friedman admires Don Brash. True. While not resiling from his "passive monetary policy: Thou shalt abolish the Federal Reserve," Friedman attributes the "better performance in monetary policy over the past twenty years or so ... primarily [to] the recognition by central banks worldwide that they have responsibility for inflation."

And how did that happen, says Friedman?
My aphorism, “Inflation is always and everywhere a monetary phenomenon,” was converted from an object of derision to a near truism. This experience was of course strongly reinforced by the leadership shown by Alan Greenspan in the United States, but also I believe by the leadership shown by Donald Brash in New Zealand.
Read it all here: Letter from Milton. [And listen here to Don defending central banking to a libertarian free-banking audience. And see here my own comments on how the Reserve Bank's guidelines have become a straitjacket for the economy.]

LINK: Letter from Milton - Greg Mankiw's Blog [Hat tip Rodney Hide]
Do we need a central bank? - DonBrash.Com [transcript of speech to SOLO conference]
Do we need a central bank? - Audio of speech, including Q & A
Denying prosperity by misunderstanding inflation - Not PC (Peter Cresswell)

RELATED:
Economics, Politics-National, History-Modern

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3 Comments:

Anonymous Robert Winefield said...

Milton might like Don because he's his long lost evil twin... The resemblance is scary! Or do all economists bald and bespeckled?

8/23/2006 01:56:00 pm  
Blogger PC said...

I'm pretty sure George Riesman has all his own hair and his own eyes. But he's also exceptional for other reasons. :-)

8/23/2006 02:38:00 pm  
Blogger leelion said...

the Zimbabwean government are doing a superb job of late to promote the benefits of central banking

I see new vehicle sales are down in the U.S (classic sign of slowdown) and looks like their housing market is fizzling, interesting to see what happens next

8/23/2006 02:51:00 pm  

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