Friedman on interest rates
After the U.S. experience during the Great Depression, and after inflation and rising interest rates in the 1970s and disinflation and falling interest rates in the 1980s, I thought the fallacy of identifying tight money with high interest rates and easy money with low interest rates was dead. Apparently, old fallacies never die – Milton Friedman on the Japanese riddle,
Any indirect allusion to the US current situation is on purpose. Sometimes I think Milton Friedman’s influence on the Chicago School has been much exaggerated. From the occasionally wrong but always interesting Scott Sumner’s the Money Illusion.