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Friedman was widely regarded as the leader of the Chicago School of monetary economics, which stresses the importance of the quantity of money as an instrument of government policy and as a determinant of business cycles and inflation. He published many books and articles, most notably A Theory of the Consumption Function, The Optimum Quantity
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Jun 16, 2016 · Although he made many important contributions to both economic theory and policy—most clearly demonstrated by his development of and support for the quantity theory of money—he was also active in various spheres of public policy, where he, more often than not, championed the free market and liberty.
- Education and Early Career
- The University of Chicago and Hoover lnstitution
- Friedman The Theoretical Economist
- Monetarism and The Great Depression
- Real-World Application of Monetarism
- The Public Face of Free Markets
- Friedman The Public Intellectual
- Communicating Economics to The Masses
- The Bottom Line
Milton Friedman (1912 to 2006) was born to immigrant parents in Brooklyn, N.Y., and grew up in a small town in in New Jersey, 20 miles from New York City. In his Nobel biography, Friedman described his family as “warm and supportive,” but the family income as “small and highly uncertain.” His father died during his senior year in high school, and h...
In 1946, Friedman accepted an offer to teach economic theory at the University of Chicago and spent the next 30 years conducting groundbreaking analysis and developing free-market theories that challenged Keynesian economics—the school of thought that had dominated macroeconomics since the New Deal. Workshop on Money and Banking: A key institutiona...
Certain of Friedman’s accomplishments as a theoretical economist have been so significant that even vocal neo-Keynesian critics admire the brilliance of his logic, including his assertion that economic models should be judged by the accuracy of their predictions about behavior rather than their psychological realism. For example, in Friedman’s rati...
When Friedman won the Nobel Prize in 1976, the Committee cited a book on monetarism that he and his colleague Anna Schwartz had published in 1963, "A Monetary History of the United States, 1867–1960."In this book, Friedman used highly detailed theoretical and empirical analysis of the role of money in the U.S. economy since the Civil War to make th...
Friedman first introduced monetarism in his 1959 book, "A Program for Monetary Stability," and for the next three decades monetarism was a major topic of economic debate. In subsequent publications and public appearances over the next 25 years, he made the case for controlling the money supply so effectively that his reputation as an economist was ...
In 1976, when Friedman was awarded the Nobel Prize in Economic Sciences for his work on consumption analysis, monetary history and theory, and the complexity of stabilization policy, it marked the turning of the tide away from three decades of Keynesian economics and toward the Chicago School of Economics he had co-founded. With this international ...
One of Friedman’s most significant accomplishments was the extent to which his theories influenced government policy and public opinion as well as economic research. As the Nobel Committee noted in 1976, “It is very rare for an economist to wield such influence, directly and indirectly, not only on the direction of scientific research but also on a...
One measure of the extent to which Friedman has shifted the center of debate about the proper role of government in the economy is the fact that certain of his core ideas have become popular wisdom.
Milton Friedman is widely considered the most influential economic and public policy thinker of the second half of the 20th century, just as Keynes is considered the most influential of the first half. One of Friedman’s most significant accomplishments was the extent to which his theories influenced government policy and public opinion as well as e...
Until the late 1940s or early 1950s Friedman believed that fiscal policy should be the primary tool of government policy in macroeconomic stabilisation – the management of real GDP growth and inflation.
Mar 14, 2024 · As the “prophet of the free market,” Robert Skidelsky writes, Friedman advocated drastic reductions of taxes, regulation, and government involvement in the economy, playing a central role in the shift in mainstream political economy from liberal Keynesianism to free market neoliberalism.
Friedman provided the intellectual foundations for the anti-inflation, tax-cutting and antigovernment policies of President Ronald Reagan and British Prime Minister Margaret Thatcher and an era of more-disciplined central banking.
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Friedman argues that the role of economics is to propose hypotheses about economic behavior—“models”—that obey the principles of maximizing behavior under constraints. These models should be internally coherent and should be bold simplifications of reality, from which emerge testable predictions about how economic variables behave:
