Focusing on the period of Milton Friedman's collaboration with Anna J. Schwartz, from 1948 to 1991, this 1996 work examines the history of debates between Friedman and his critics over money's causal role in business cycles. Professor Hammond shows that critics' reactions were grounded in two distinctive features of Friedman and Schwartz's way of doing economic analysis - their National Bureau business cycle methods and Friedman's Marshallian methodology. With the post-war dominance of Cowles Commission methods and Walrasian methodology, Friedman and Schwartz's monetary economics appeared to contemporary critics to be 'measurement without theory'. Drawing extensively upon unpublished materials, Professor Hammond's treatment offers new insights on Milton Friedman's attempts to settle debates with his critics and his eventual recognition of the methodological impediments. The book will interest monetary economists and macroeconomists, as well as historians of economics and methodologists.
• Newest book-length treatment of work of Milton Friedman, Nobel prizewinner and perhaps best-known American economist of all time • Draws on interviews with Friedman and much unpublished source material from Friedman's archives • A clearly written treatment balancing theoretical and methodological issues in Friedman's thought
Introduction; 1. Theory and measurement at the National Bureau; 2. Origins of Friedman's Marshallian methodology; 3. Origins of the monetary project; 4. Critiques from within the National Bureau; 5. Post Hoc Ergo Propter Hoc, part I; 6. Reactions to the Monetary History; 7. Post Hoc Ergo Propter Hoc, part II; 8. Friedman and his critics on the theoretical framework; 9. The Great Depression; 10. Measurement without measurement: Hendry and Ericsson's critique; Conclusion; Bibliography.
'… I consider the overall scientific quality of the book excellent. Any scholar of the history of the twentieth-century macroeconomics will find it stimulating.' History of Economic Ideas