Naked Capitalism has the article Milton Friedman’s ” The Role of Monetary Policy” – 50 Years Later.
You can read all the professional remarks without ever seeing a mention of the obvious that I see.
What happened to Keynes’ insight that putting liquidity out there is like pushing on a string as long was there is no demand for investment? If the spenders, the middle-class, are not getting the money, there will be slack consumer demand. With the increasing size of the Chinese economy and its tendency to suck up all manufacturing as an excuse to keep salaries low, I don’t know how much of Friedman’s analysis can apply anymore. None of the forces driving the world economy now were large enough to have an impact when Friedman looked at the data.
It just amazes me that we can have these economic discussions without ever mentioning the elephant in the room.