ABSTRACT
Milton Friedman succeeded in, and by, placing expectations at the center of macroeconomic analysis. His contribution was, in part, constructive (it created a pivotal position for expectations) and, in part, destructive (it undermined the previous Keynesian orthodoxy). That orthodoxy had made significant progress with respect to the analysis of expectations; but the monetarist counter-revolution succeeded in creating the impression that orthodoxy was fundamentally flawed – in large part because of the supposed neglect of expectations.
