The Optimal Amount of Money

Presented by Nobel Laureate and prominent monetary theorist Milton Friedman, this classic collection of essays offers a coherent perspective on the role of money. It delves into specific topics surrounding the empirical analysis of monetary phenomena and policy. The initial chapters explore the factors that determine the real quantity of money within a community and the implications of policies that impact this quantity. Subsequent chapters formally articulate why quantity analysis has become a focal point in the field of economics.

Friedman's presidential address to the American Economic Association, featured in this collection, provides a comprehensive summary of his views on monetary policy, highlighting both its limitations and possibilities. This theoretical framework is then applied to various empirical issues such as the demand for money, price changes during wartime, and the influence of money on business cycles. These essays serve as a summation of Friedman's extensive research throughout his lifetime.

The following chapters focus on policy, examining the viewpoints of past economists and addressing the significance of lags and the consequences of destabilizing speculation in foreign markets. "The Optimum Quantity of Money" offers a thorough examination of monetary theory developed in leading centers of monetary analysis. It is considered essential reading for economists, graduate students, as well as professionals in the fields of business and banking.

Additionally, a new statement by Michael Bordo, a student of Friedman and an expert in the field, provides insight into the current state of the economy and academia. This updated perspective adds value to the overall understanding of monetary theory.

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