Milton Friedman: Why Money Matters – How Did He Determine Business Cycle Peaks?
In an article written by Milton Friedman (published in the Wall Street Journal), the positive impact of the quantity of money stock on GDP is shown very well. Can you tell me what metrics he used to determine what he calls “Business Cycle Peaks” in his article? It does not seem to be the Stock Market, Money Supply or nominal GDP – would greatly appreciate some help understanding this.
Thanks
The peaks and troughs are picked by the National Burea of Economic Research. You can read about their approach on the website:
http://www.nber.org