The purpose of this paper is to discuss the thoughts of Milton Friedman on the role of fiscal policy. The discussion is structured with four topics. The first brings back parts of the author's trajectory, from his initial phase where he believes on the importance of the fiscal policy to the moment he denies it. The second talks about issues presented in the previous topic and the arguments used to deny the effectiveness of fiscal policy. The third is the presentation of the permanent income hypothesis and its position against the use and implications of the consumption function in studies of the old neoclassic synthesis. The last topic highlights the criticism against the discretionary actions, with emphasis on the lags on fiscal policy. The return to the author is justified because his ideas have influenced the way of the current dominant macroeconomic theory thinking of relevant topics on fiscal policy.
History of economic thought; Milton Friedman; fiscal policy