The Role of Monetary Policy

Friedman, Milton. "The Role of Monetary Policy." American Economic Review. Vol. LVIII, No. 1 (March, 1968), pp. 1-17.


There is wide agreement about the major goals of economic policy: high employment, stable prices, and rapid growth. There is less agreement that these goals are mutually compatibleor, among those who regard them as incompatible, about the terms at which they can and should be substituted for one another. There is least agreement about the role that various instruments of policy can and should play in achieving the several goals.

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