Robert E. Lucas on Milton Friedman

“Friedman was the big influence here. [...] Friedman is a really gifted teacher plus a superb economist. He spent almost all his time on applying economics. He would start with some real world situation, some quote from newspaper, some Wall Street Journal editorial, some sentence. And then he would try and get into a class discussion.”

“One thing all of us admired about Friedman's book on consumption was the way Friedman integrated the aggregate time-series evidence and cross-sectional survey evidence. He gave a unified explanation of very different samples in a single theoretical model.”

“He's very influenced by Savage and by this Bayesian way of thinking about probabilities. So when I talk about people "knowing" a probability, he just can't reach that language.”