Economists and Economic Policy
Economists and Economic Policy
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经济学家和经济政策
DOI:
10.1111/j.1465-7295.1986.tb01793.x
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发表时间:
1986
期刊:
影响因子:
1.8
通讯作者:
M. Friedman
中科院分区:
文献类型:
--
作者:
M. Friedman
I'm no exception to my generalization about the typical approach of the economist in dealing with public policy. Most of my own work dealing with public policy has had the same çharacter of proceeding as if I were addressing governmental officials selflessly dedicated to the public interest. As you know, for many years I have studied and analyzed monetary policy. On the lbasis of that work, I have attempted to persuade the Federal Reserve System that it was doing the wrong thing and that it ought to adopt a different policy. That was time ill-spent. It has had no appreciable results on the behavior of the Federal Reserve System and there is a good reason why it did not: because the public-interest characterization of government is basically flawed. That way of viewing government is very different from the way we view business. We do not regard a businessman as selflessly devoted to the public interest. We think of a businessman as in business to improve his own welfare, to serve his own interest. Adam Smith taught us that “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages." In his famous phrase, though “every individual intends orly his own gain, he is... led by an invisible hand to promote an end which was no part of his intention." Why should we regard government officials differently? They too aim to serve their own interest, and in government as in business we must try to set up institutions under which individuals who intend only their own gain are led by an invisible hand to serve the public interest, instead of, as so often happens, by an" invisible foot" to serve private interests that it was no part of their intention to serve. The inconsistency between our treatment of government and our treatment of business has long been recognized, but generally only in asides." The great contribution of what has become known as the theory of public choice, developed by such writers as Anthony Downs in The Economic Theory of Democracy, and James Buchanan and Gordon Tullock in The Calculus of Consent, has been to make this inconsistency explicit, and to force all of us to recognize that we should analyze govern-mental officials in the same way that we analyze businessmen, as promoting their own self-interest.I can illustrate the importance of this change of viewpoint by using it to show why it was a waste of my time to try to convert the Fed to my point of view. Suppose that ten or twenty years ago the Federal Reserve had adopted the policies that I and other monetarists were proposing. Suppose that it had then embarked om a policy of increasing the quantity of money at about 3 percent a year, year after year, and doing nothing else-at least in respect of aggregate monetary policy. I believe that there would be wide agreement among economists in general and monetary economists in particular that