Did Friedman and Schwartz Fudge Their Data? Not So Fast …

ConclusionTo sum up, claiming that Friedman and Schwartz “fudged their data” or “cooked their numbers” is a gross misrepresentation. Even critics of their theoretical conclusions rely on their raw numbers. Friedman and Schwartz can be challenged on minor econometric issues, particularly their analysis of velocity’s behavior. But the erratic beha vior of velocity beginning in the 1980s has diminished the relevance of even these questions. In contrast, Friedman and Schwartz’s estimates of the money stock in the U.S. (prior to the Fed’s reporting those numbers) not only remain the best we are likely ever to have but set a standard for hist orical and statistical research that has been rarely, if ever, matched.[Cross-posted from Alt-M.org]

Source: Cato-at-liberty - September 1, 2017 Category: American Health Authors: Jeffrey Rogers Hummel Source Type: blogs