1 The Role of Monetary Policy Let me set the scene with a very brief—and certainly selective—review of the evolution over the past several decades of professional thinking about monetary policy.
I will begin with Milton Friedman’s landmark 1967 American Economic Association presidential address, “The Role of Monetary Policy.” 2 This article is, of course, most famous for its message that there is no long-run, exploitable tradeoff between inflation  1  The views expressed are my own and not necessarily those of other Federal Reserve Board members or Federal Open Market Committee participants.