Friedman’s argument was that if the government expanded the money supply to increase employment, employers would initially expand output in response to rising prices. Unemployment would decline, which would in turn boost wages. So far, so Keynesian. This cannot last, however, because Friedman, and this is crucial, assumed that unemployment was voluntary and was not due to a deficiency of demand. People choose labor or leisure at the prevailing wage. There is no demand-deficient unemployment in Milton’s world. In other words, the 25 percent of Spaniards who are presently without work simply don’t (by Milton’s presumption) want to work at the prevailing wage and are on vacation.

Mark Blyth, Austerity, loc. 409