Economists agree about economics - and that's a science - and they disagree about economic policy because that's a value judgment... I've had profound disagreements on policy with the famous Milton Friedman. But, on economics, we agree.

The quote by Franco Modigliani highlights the important distinction between economics as a science and economic policy as a matter of value judgment. He points out that economists tend to agree on the scientific principles and theories underlying economics, which are based on data, models, and empirical analysis. However, when it comes to applying those principles through policy decisions, disagreements arise because those choices involve personal values, priorities, and ethical considerations.

Modigliani references his own experience of having "profound disagreements" with the famous economist Milton Friedman on policy matters, while emphasizing that their understanding of the science of economics remained aligned. This illustrates how economists can share a common factual foundation but differ in opinions on how to best use that knowledge to address societal issues.

The origin of this quote lies in Modigliani’s career as a Nobel Prize-winning economist who contributed significantly to economic theory. His perspective reflects the broader academic understanding that science provides tools and insights, but policy decisions require judgment calls beyond pure facts.

In essence, the quote underscores the complexity of economics as a discipline—where the science provides clarity, but human values shape the ultimate direction of policies. It reminds us that debates over economics often hinge more on differing values than on disagreements about facts.