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In macroeconomics, Friedman's k-percent rule (named for Milton Friedman) is the monetarist proposal that the money supply should be increased by the central bank by a constant percentage rate every year, irrespective of business cycles.
Friedman was best known for reviving interest in the money supply as a determinant of the nominal value of output, that is, the quantity theory of money. [104] Monetarism is the set of views associated with modern quantity theory.
A Monetary History of the United States, 1867–1960 is a book written in 1963 by future Nobel Prize-winning economist Milton Friedman and Anna Schwartz.It uses historical time series and economic analysis to argue the then-novel proposition that changes in the money supply profoundly influenced the United States economy, especially the behavior of economic fluctuations.
Friedman proposed a fixed monetary rule, called Friedman's k-percent rule, where the money supply would be automatically increased by a fixed percentage per year. The rate should equal the growth rate of real GDP , leaving the price level unchanged.
The Friedman rule is a monetary policy rule proposed by Milton Friedman. [1] Friedman advocated monetary policy that would result in the nominal interest rate being at or very near zero. His rationale was that the opportunity cost of holding money faced by private agents should equal the social cost of creating additional fiat money.
Because "only Washington" can create money. ‘100%’: Elon Musk shares famed Milton Friedman speech saying ‘inflation is made in Washington’ by ‘too much government spending’ — nothing ...
In that speech, Bernanke himself says: "a money-financed tax cut is essentially equivalent to Milton Friedman's famous 'helicopter drop' of money". [7] In a footnote to that speech, Bernanke also references an important paper by Gauti Eggertson which emphasizes the importance of a commitment from the central bank to keep the money supply at a ...
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