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Friedman’s t-ratios were overstated by nearly 100%

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Letter written to the Financial Times by Professor Sir David Hendry, Director, Economic Modelling, Institute for New Economic Thinking at the Oxford Martin School

Citation:

There were serious errors resulting from Milton Friedman’s failure to understand the computer output produced by his “phase averaging” process.

Programme on Economic Modelling, INET Oxford

Programme on Economic Modelling, INET Oxford

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David Hendry
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