Acknowledgments I would like to particularly thank my advisor, Yorick Wilks. Over the years I have known him, Yorick has always been insightful, cheerful and generous. His ability to understand and constructively critique research over an extraordinarily wide range of topics has been extremely helpful, both professionally and academically. Moreover, his willingness to consider and even nurture ...

long interested both economists and central bankers. This interest has taken on renewed importance in light of a growing consensus that central banks should —first and foremost—pursue price stability. The roots of this argument date back to Milton Friedman’s famous dictum that “inflation is always and everywhere a monetary phenomenon.” Yet recently this view has come under attack. As figure 1 i...

S ince John Maynard Keynes wrote the General Theory of Employment, Interest, and Money in 1936, Keynesian economics has been highly influential among academics and policymakers. Keynes has certainly had his detractors, though, with the most influential being Milton Friedman, Robert Lucas, and Edward C. Prescott. Monetarist thought, the desire for stronger theoretical foundations in macroeconomi...

The problem of inflation has been of central concern to American policymakers since the mid 1960s. Of particular concern has been the rise in the core, or sustained, inflation rate from below the 2 percent level in the early 1960s to near the double-digit level by the late 1970s. Since 1981 a rapid disinflation has occurred, bringing the current inflation rate down to below 5 percent. The recen...

The negative income tax represents one of the fundamental ideas of modern welfare policy. Based on a simple application of elementary price theory, it has a powerful lesson for work incentives in welfare programs. The academic literature on the negative income tax has raised two difficulties with it, one concerning work disincentives arising from an increase in the eligibility point, and the ot...

The present paper does not claim to be a description of the TGTSystem, since it was already presented by Professor Friedman herself at the International Conference on Computational Linguistics in Stockholm in 1969. In addition the system has been described also in the book Jo'i'cE FRIEDMAN, A Computational Model of Transformational Grammar, Elsevier, 1971. Our intention is to present the new in...