Milton Friedman’s Rabble-Rousing Case for Abolishing the Fed

Uneasy Money

I recently came across this excerpt from a longer interview of Milton Friedman conducted by Brian Lamb on Cspan in 1994. In this excerpt Lamb asks Friedman what he thinks of the Fed, and Friedman, barely able to contain his ideological fervor, quickly rattles off his version of the history of the Fed, blaming the Fed, at least by implication, for all the bad monetary and macroeconomic events that happened between 1914, when the Fed came into existence, and the1970s.

Here’s a rough summary of Friedman’s tirade:

I have long been in favor of abolishing [the Fed]. There is no institution in the United States that has such a high public standing and such a poor record of performance. . . . The Federal Reserve began operations in 1914 and presided over a doubling of prices during World War I. It produced a major collapse in 1921. It had a…

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This entry was posted in applied price theory on by .

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 https://utopiayouarestandinginit.wordpress.com/2014/03/12/why-call-my-blog-utopia-you-are-standing-in-it/

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