The Impact Of Milton Friedman On Modern Monetary Economics: Setting The Record Straight On Paul Krugmans "who Was Milton Friedman?"

Paul Krugman's essay "Who Was Milton Friedman?" seriously mischaracterizes Friedman's economics and his legacy. In this paper the authors provide a rejoinder to Krugman on these issues. In the course of setting the record straight, they provide a self-contained guide to Milton Friedman's impact on modern monetary economics and on today's central banks. They also refute the conclusions that Krugman draws about monetary policy from the experiences of the United States in the 1930s and of Japan in the 1990s.