Friedman held that "the demand for money is highly stable"; yet, he overlooked the conventional wisdom that the velocity of money would be accelerated substantially along with the institutional and technological changes. If no corrective factors to cancel the impact of the accelerative velocity...

There is a long-negligent defect in Friedman's monetary framework. Friedman overlooked the common wisdom that, in the long run, along with the institution and technology changes, the velocity of money would be accelerated substantially. If no corrective factors to cancel the impact of the...