Central bankers like to invoke Milton Friedman’s views as an excuse for their own monetary mischief.
F.A. Hayek saw that there were problems with Friedman’s claims of the superiority of a fixed rate of growth in the money stock as the basis of macroeconomic stability.
“I wish I could share the confidence of my friend Milton Friedman who thinks that one could deprive the monetary authorities, in order to prevent the abuse of their powers for political purposes, of all discretionary powers by prescribing the amount of money they may & should add to circulation in any one year. It seems to me that he regards this as practicable because he has become used for statistical purposes to draw a sharp distinction between what is to be regarded as money & what is not. This distinction does not exist in the real world. I believe that, to ensure the convertibility of all kinds of near-money into real money, which is necessary if we are to avoid severe liquidity crises or panics, the monetary authorities must be given some discretion. But I agree with Friedman that we will have to try and get back to a more or less automatic system for regulating the quantity of money in ordinary times.”
~F.A. Hayek~ “Full Empoyment at Any Price”