Keynes, Chicago and Friedman

John Maynard Keynes and Milton Friedman were the most influential economists of the twentieth century, if not of all time. Their influence expanded far beyond the economics profession into the domain of public opinion and the policy process. When Friedman launched his monetarist counter-revolution in 1956 he downplayed his own originality and claimed that he was doing little more than formalising an existing Chicago ‘oral tradition’. Thirteen years later, as monetarism was acquiring an almost irresistible momentum, one of Friedman’s friends and ex-Chicago colleague, Don Patinkin, launched a blistering attack on Friedman’s account of the Chicago origins of his counter-revolution. This in turn launched the new subdiscipline of Chicago Monetarism.

As theoreticians and econometricians fiercely debating the merits and demerits of monetarism, Keynes and Friedman found this literature about Chicago and other centres of business cycle research provided rich and profound insights into the origins of the modern configuration of economics. These two volumes gather together for the first time the classic essays on Chicago Monetarism. Among the contributors are Friedman, Patinkin, Harry Johnson, James Tobin, David Laidler and Michael Parkin, as well as the dominant forces of inter-war Chicago: Frank Knight, Jacob Viner, Henry Simons and Lloyd Mints.

Some of the issues under dispute can be regarded as resolved; others are still being debated. A previously unpublished text describes the content of the monetary economics course that Friedman took at Chicago in 1932–3. It demonstrates the enormous influence that the pre-General Theory Keynes exerted at Chicago. This two-volume set reveals that fierce academic disputation can generate both light and heat. It will be of interest not only to policy analysts and historians of thought but also to those interested in the process of knowledge construction in the economics profession.

• General introduction
• Consolidated index
• Texts reproduced in facsimile

Contents

Volume 1

Part One: The Initial Controversy

R Leeson, Introduction; M Friedman, ‘Studies in The Quantity Theory of Money – A Restatement’ (1956), M Friedman, ‘The Monetary Theory and Policy of Henry Simons’ (1967); M Friedman, ‘The Quantity Theory of Money’ (1968); D Patinkin, ‘The Chicago Tradition, The Quantity Theory and Friedman’ (1969); D Patinkin, ‘Friedman on the Quantity Theory and Keynesian Economics’ (1974); M Friedman, ‘Comments on the Critics: Patinkin’ (1972/1974); H G Johnson, ‘The Keynesian Revolution and the Monetarist Counter-Revolution’ (1971); D Laidler, ‘Monetarism: An Interpretation and an Assessment’ (1981); J Tobin, ‘The Monetarist Counter-Revolution Today – An Appraisal’ (1981); R Leeson, ‘The Early Patinkin–Friedman Correspondence’ (1998); R Leeson, ‘Patinkin, Johnson and the Shadow of Friedman’ (2000)

Part Two: The Debate Widens

R Leeson, Introduction; T M Humphrey, ‘Role of Non-Chicagoan Economists in the Evolution of the Quantity Theory in America’ (1971); L Currie, ‘A Note on Professor Humphrey’s Article’ (1972); D Patinkin, ‘More on the Chicago Monetary Tradition’ (1973/1981); T M Humphrey, ‘On the Monetary Economics of Chicagoans and non-Chicagoans: Reply’ (1973); M Parkin, ‘Essays on and in the Chicago Tradition: A Review Essay’ (1986); D Patinkin, ‘A Reply’ (1986); H Simons, ‘Review of Currie’s Supply and Control of Money in the United States’ (1935); F G Steindl, ‘The 'Oral Tradition' at Chicago in the 1930s’ (1990); D Patinkin, ‘ The Chicago Tradition: A Comment’ (1991)

Volume 2

Part Three: How Unique Was The Chicago Tradition?

R Leeson, Introduction; G Tavlas, ‘Some Further Observations on the Monetary Economics of Chicagoans and Non-Chicagoans’ (1976); J R Davis, ‘Chicago Economists, Budget Deficits, and the Early 1930s’ !1968); J R Davis, ‘The Last Remake of the New Economics and the Old Economists’ (1979); G Tavlas, ‘The Last Remake of the New Economics and the Old Economists: Reply’ (1979); T Cate, ‘Keynes on Monetary Theory and Policy: Comment’ (1981); G Tavlas, ‘Keynes on Monetary Theory and Policy: Reply’ (1981); G Tavlas, ‘The Chicago Tradition Revisited: Some Neglected Monetary Contributions: Senator Paul Douglas (1892–1976)’ (1977); G Tavlas, ‘Chicago Schools Old and New on the Efficacy of Monetary Policy’ (1977); J Ascheim and G Tavlas, ‘On Monetarism and Ideology’ (1981); D Laidler, ‘Hawtrey, Harvard and the Origins of the Chicago Tradition’ (1993); G Tavlas, ‘Chicago, Harvard, and the Doctrinal Foundations of Monetary Economics’ (1977); G Tavlas, ‘Was the Monetarist Tradition Invented?’ (1998); D Laidler, ‘More on Hawtrey, Harvard and Chicago’ (1998); G Tavlas, ‘More on the Chicago Tradition’ (1998); D Laidler, ‘Hawtrey, Harvard and Chicago: A Final Comment’ (1998); D Laidler, ‘The Chicago Monetarist Tradition’ (1999); G Tavlas, ‘Response from Tavlas’ (1999); D Laidler and R Sandilands, ‘An Early Harvard Memorandum on Anti-Depression Policies’ (2002); L B Currie, H D White, and P T Ellsworth, ‘Memorandum’ (1932)

Part Four: Towards A Resolution Of The Dispute

R Leeson, Introduction; D Patinkin, ‘Keynesian Monetary Theory and the Cambridge School’ (1974); D Patinkin, ‘The Collected Writings of John Maynard Keynes: From the Tract to the General Theory’ (1975); D Patinkin, ‘Keynes and Chicago’ (1979/1981); J Viner, ‘Pessimism Vindicated’ (1932); J Viner, ‘Mr Keynes on the Causes of Unemployment and Comment on my 1936 Review’ (1936/1964); H C Simons, ‘Keynes Comments on Money’ (1936); H C Simons, ‘Keynes Comments on Money’ (1936); F Knight, ‘Unemployment and Mr Keynes' Revolution in Economic Theory’ (1937); L W Mints, ‘Monetary Policy’ (1946); A Hansen, ‘Notes on Mints' Paper on Monetary Policy’ (1946); H S Ellis, ‘Comments on the Mints and Hansen Papers’ (1946); R Leeson, ‘From Keynes to Friedman via Mints: Resolving the Dispute over the Quantity Theory Oral Tradition’ (2002)

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