"I'm often sympathetic to people who talk about the theology of the market, the theology of monetary policy, because once you've mastered the basic notions of competition and all the intricate mechanisms, and interconnectedness of market operations around the world with [the] Internet and everything else, once you've mastered that you see there is no other way to keep order and dynamism among scattered individuals and tribes except through an open market system, law of contracts, strong laws and enforcement of competition and of contracts and monetary stability. Once you've got that, it's a dominant religion, almost. I have said -- and it's offended some of my other Christian friends, they have said this is awful, sacrilege -- I have said that the market is almost god-ordained. The laws of competition, the ordinary laws of supply and demand are the nearest you have in the social sciences to the laws of motion and the laws of gravity in the natural sciences. [Because] there's competition and markets you can tell that [if] you act in a certain way, you will blow up the currency. We knew that inflation was going to happen not [by] listening to what politicians said, but watching their hands, when their hands moved towards the till, and [we] could see that 18 months or two years before monetary expansion led to inflation. Friedman lay all this down in very clear and emphatic terms."
Market

January 1, 1970

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Original Language: English