Monetary Policy Response Lag: US Consumer

Sadly, Milton Friedman is an increasingly forgotten name in finance. The late University of Chicago professor was most famous for his Nobel Prize and Free to Choose which he wrote with his wife, professor Rose Friedman. Read it.

Friedman’s 1976 Nobel stemmed from his work in consumption analysis and monetary theory. To describe the impact of monetary policy, Friedman coined the term “long and variable lags” a phrase we hear often from the Federal Reserve.