Money Growth Has Slowed Sharply—Should Anybody Care?

Milton Friedman, one of greatest economists of all time, died on November 16, 2006 at age 94. He was famous for his conclusion that “inflation is always and everywhere a monetary phenomenon,” and for the related notion that ultimately the only thing a central bank, such as the Federal Reserve System, can control is inflation, and not output, employment, interest rates or other items that politicians and other interest groups typically urge central banks to control. This article focuses on some of his more important ideas about money and monetary policy, both as a memorial and because his views remain controversial in their application, although not in their general acceptance.