A Program for Monetary Stability

A Program for Monetary Stability is an influential economics text published in 1960 by Milton Friedman, based on his Moorhouse I. X. Millar lectures at Fordham University. The book represents findings from Friedman's research with Anna Schwartz at the National Bureau of Economic Research. The text examines the role of government intervention in monetary policy and banking regulation, with Friedman arguing for specific limits on fiduciary currency. Despite his liberal economic philosophy, Friedman makes the case that pure market forces cannot adequately regulate monetary matters without government oversight. In four focused chapters, Friedman outlines his vision for achieving monetary stability through a combination of government frameworks and controlled market mechanisms. The book presents concrete policy recommendations for reforming the monetary system. The work stands as a foundational text in monetarist economic theory, balancing free market principles with practical necessities of government monetary control. Its arguments about the relationship between money supply and economic stability continue to influence policy discussions.

Readers consider this book a clear explanation of Friedman's monetary policy proposals. The book focuses on his 100% reserve banking plan and rules-based approach to money supply. Readers appreciate: - Clear technical explanations without complex math - Historical examples that support key points - Practical policy recommendations - Concise length at 100 pages Common criticisms: - Dated examples from the 1950s - Too narrowly focused on US monetary system - Some find the writing dry and academic - Reserve requirement proposal seen as unrealistic by modern readers Ratings: Goodreads: 3.9/5 (62 ratings) Amazon: 4.2/5 (12 ratings) From reviews: "Explains complex monetary concepts in plain language" - Goodreads reviewer "Important historical perspective but needs updating for modern context" - Amazon reviewer "Dense reading but worth it for understanding monetary theory fundamentals" - Goodreads reviewer

Free Banking and Monetary Reform by David Glasner A detailed examination of competing monetary frameworks that explores similar themes about the balance between market forces and government control in monetary policy.

Money Mischief: Episodes in Monetary History by Milton Friedman Expands on the historical analysis of monetary policy failures and successes first explored in A Program for Monetary Stability.

The Theory of Money and Credit by Ludwig von Mises Presents foundational concepts about monetary theory and the role of central banking from an Austrian School perspective that intersects with Friedman's monetarist analysis.

Banking and the Business Cycle by C.A. Phillips Studies the relationship between banking policy and economic stability through a monetarist lens that complements Friedman's framework.

Free Banking by Lawrence H. White Examines historical examples of unregulated banking systems and their implications for monetary stability, providing a market-oriented counterpoint to Friedman's arguments.

🔸 The book emerged from Friedman's lectures at Fordham University in 1959, making it a rare example of academic presentations successfully transformed into an influential policy document 🔸 While collaborating with Anna Schwartz on this work, Friedman was also developing his landmark "A Monetary History of the United States," which would later revolutionize understanding of the Great Depression 🔸 The publication helped establish Friedman's "monetarist" school of thought, challenging the dominant Keynesian economics of the 1960s and influencing Federal Reserve policies for decades 🔸 Unlike many of his other works targeting general audiences (like "Free to Choose"), this book was written primarily for economics professionals and policymakers, featuring complex technical analysis 🔸 The book's argument for maintaining a steady money supply growth rate of 3-5% annually became known as "Friedman's k-percent rule" and influenced central banking practices worldwide