monetary policy

is (in terms of the power to determine the quantity of money) too important, too pervasive, to be exercised by a few people, however public-spirited, if there is any feasible alternative.

The power to determine the quantity of money. . . is too important, too pervasive, to be exercised by a few people, however public-spirited, if there is any feasible alternative. There is no need for such arbitrary power. Milton Friedman

is, contrary to Milton Friedman's belief, unable to fight depressions unaided as evidenced first in Japanese and now across the western world. A more activist government is needed than friedman was willing to countenance.

Now, I don't want to put Friedman on a pedestal. In fact, I'd argue that the experience of the past 15 years, first in Japan and now across the Western world, shows that Keynes was right and Friedman was wrong about the ability of unaided monetary policy to fight depressions. The truth is that we need a more activist government than Friedman was willing to countenance. The point, however, is that modern conservatism has moved so far to the right that it no longer has room for even small concessions to reality. Friedman tried to save free-market conservatism from itself but the ideologues who now dominate the G.O.P. are beyond saving.

monetary policy, n.Definitions

monetary policy