Source: Cobden Centre
by Dr. Frank Shostak
“In order to unravel the secret of business cycles, Milton Friedman – the leader of the monetarists school of thinking – employed a guitar string metaphor. By this metaphor, the stronger one pulls the string down, the stronger the string will go up. Hence, Friedman concluded that a strong bust is followed by a strong boom. For Friedman what matters is to have a theory that can replicate the fluctuations of the data. He is not concerned with whether the theory corresponds to the real world.” (08/14/25)
https://www.cobdencentre.org/2025/08/milton-friedmans-guitar-string-boom-bust-cycle-theory/