This paper offers a retrospective on the monetarist debate started by Milton
Friedman in the 1950s, discussing both monetarist theory and policy
recommendations. While the inability to find a controllable monetary aggregate
with a velocity that can be accurately predicted has severely damaged the
monetarist case, on other issues, such as the importance of changes in the
monetary growth rate and the need to control inflation, the monetarist challenge
to Keynesian orthodoxy was successful and made a central contribution to the
currently prevailing macroeconomics.