What Would Milton Friedman Have Thought of the Great Recession?

SCOTT SUMNER
AMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY 74.2 (2015): 209-235

Abstract: Milton Friedman died in 2006, right before the onset of the Great Recession. Unfortunately, we will never know how Friedman would have interpreted this event. However, we can draw some inferences from his published views on the Great Depression, as well as his views on more recent monetary policy, especially in Japan. It seems likely that Friedman would have blamed the Fed for insufficiently expansionary monetary policy during 2008 and 2009, a view that is quite different from the conventional conservative interpretation of events.