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Cant and recant: Milton Friedman's latest research on the Federal Reserve challenges key assumptions of a very prominent economist: Milton Friedman.

The American Prospect

| January 01, 2006 | Kuttner, Robert | COPYRIGHT 2006 The American Prospect, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

MORE THAN ANY OTHER INDIVIDUAL, MILTON Friedman was the intellectual inspiration of the conservative counterrevolution against activist government as an engine of economic efficiency and social justice. In his scholarly work contending that government intervention invariably makes things worse, and in his popular polemics equating capitalism with human freedom, Friedman inspired conservative academic economists and movement activists alike. He is the high priest of the ideology that can be reduced to a bumper sticker: Markets work; government doesn't. More narrowly, Friedman is famous for the economic theory known as monetarism and the corollary view that the Federal ...

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