----------------- HES POSTING ----------------- If I understand Michael Ambrosi's question, he is inquiring where Friedman states his argument that monetary authorities (central banks) should follow a rule (such as a price level rule or a money growth rule) rather than being given the discretionary power to conduct monetary policy as they see fit. There are many places where Friedman makes this argument, but it is certainly repeated in almost every major work he wrote in monetary economics. Two easily accessible places in whcih he made the argument are in chapter three of _Capitalism and Freedom_(1962) entitled "The Control of Money" (see especially the final section, entitled "Rules Instead of Authorities") and his presidential address to the American Economic Association, "The Role of Monetary Policy" (AER, March 1968). Bradley Bateman ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]