The rhetoric of Friedman's quantity theory manifesto

Abstract

Friedman's 1956 essay, ‘The Quantity Theory of Money: A Restatement’, in his Studies in the Quantity Theory of Money should be read in the context of the prevailing Keynesian consensus of the time. His primary task had to be to convince economists to reconsider this theory. This required an ecumenical presentation that would not drive off potential readers. At the same time it required making some strong claims for the quantity theory to induce readers to reconsider it. A combination of ‘sweet reason’ and shock tactics was needed. Friedman accomplished this rhetorical task brilliantly.

Keywords:

• Friedman
• quantity theory
• monetarism
• rhetoric