Transcription of American Economic Association
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American Economic Association
American Economic AssociationThe Role of Monetary PolicyAuthor(s): Milton FriedmanReviewed work(s):Source: The American Economic Review, Vol. 58, No. 1 (Mar., 1968), pp. 1-17 Published by: American Economic AssociationStable URL: .Accessed: 05/02/2013 18:22 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at ..JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship.
cal developments initiated by Haberler but named for Pigou that pointed out a channel-namely, changes in wealth-whereby changes in the real quantity of money can affect aggregate demand even if they do not alter interest rates. These theoretical developments did not un- dermine Keynes' argument against the potency of orthodox monetary
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