Milton Friedman, A great Contributor in the modern economy

Milton Friedman

Who is Milton Friedman?

Milton Friedman, was a well-known American economist, who has countless contributions in the field of economy. Milton Friedman was received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis.

Friedman’s works include many monographs, books, scholarly articles and lecture which covers a broad range of economic topics and public policy issues.

During his time as a professor at the University of Chicago, Milton Friedman developed numerous theories about the free market which opposed the traditional Keynesian views.

He strongly opposed the Keynesian theory and even labeled the study as being Naive this eventually lead to his research of the consumption function. In the 1960s he spearheaded the advocacy of opposing the Keynesian government.                                                                                                              

Milton Friedman became an advisor to the Republican U.S. President Ronald Reagan and the British Prime Minister, Margaret Thatcher.

Friedman’s works

In his time as an opposition to the Keynesian government, he theorized that the existence of a natural rate of unemployment and that if the natural rate of unemployment would falter causing the economy to go into inflation.

The Theory of Consumption was Friedman’s first big break through which championed the idea that a person’s consumption and saving decisions are greatly affected by permanent changes to income.

He was the proponent of Monetarism, which is a set if views based on the belief that inflation will depend on how much money the government decides to circulate. This is closely related to his study on the quantity theory of Money, which advices the government to keep the money supply in a fairly steady pace with a fair amount of expansion slightly each year to maintain the natural growth of the economy.

FAQs

Leave a Reply

Your email address will not be published. Required fields are marked *