Nikhil’s Reviews > A Monetary and Fiscal History of the United States, 1961–2021 > Status Update

Chapter 2 talks about how Friedman teased a formidable intellectual position in macro policy. How that has led to the growing position of monetarism and how it has fluctuated between controlling of M and targeting r.

The views about fiscal policy are historically not true as was established in the second chapter here. He discussed the 1964 tax cuts which had a lot of discussion about the use of fiscal policy. The expectation was that a tax cut is the right thing to do now rather than a tax reform. The counter argument was due to the inflationary nature of such spending.