Milton Friedman’s 1968 lecture and RBNZ adding employment to mandate: Monetary policy comes full circle in 2018..

Mostly Economics

Here is my recent Mint piece where I argue how the year 2018 is significant for two developments in monetary economics.  First is the 50th anniversary of much celebrated Milton Friedman’s lecture titled “The role of monetary policy”. Second is the Reserve Bank of NZ adding employment to its price stability mandate.

Both the events are obviously connected as I explain in the piece. How RBNZ adding employment to its price stability objective is against Friedman’s advice given in 1968. Friedman argued a central bank should only focus on price stability and leave other objectives to polity.  So just like life, monetary policy and central banking also keeps going in circles…

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About Jim Rose

Utopia - you are standing in it promotes a classical liberal view of the world and champion the mass flourishing of humanity through capitalism and the rule of law. The origin of the blog is explained in the first blog post at

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