Afternoon Must-Read: Nick Rowe: There Are No Friedmans Today, Except Maybe Friedman Himself

…’Where are the Galbraiths of yesteryear?’? It’s because Milton Friedman won the debate, and John Kenneth Galbraith lost…. By sheer chance, I found a Brad DeLong post…. In an alternate universe, Galbraith won and Friedman lost, and economics would be very different today. So I decided to post this…. We are all Friedman’s children and grandchildren. The way that New Keynesians approach macroeconomics owes more to Friedman than to Keynes: the permanent income hypothesis; the expectations-augmented Phillips Curve; the idea that the central bank is responsible for inflation and should follow a transparent rule. The first two Friedman invented; the third pre-dates Friedman, but he persuaded us it was right…. Friedman had a mountain to move, and he moved it. And because he already moved it, we simply cannot have a Friedman today…