Scribd
Upload
79 views1 page

Milton Friedman

Milton Friedman was a renowned American economist who received the 1976 Nobel Prize in Economics. He advocated for free-market capitalism and authored influential works like "Capitalism and Freedom." Friedman spent most of his career at the University of Chicago, where he helped establish an intellectual community. He is regarded as a leading free-market thinker and developed theories like monetarism and the permanent income hypothesis that challenged some Keynesian economic principles.

Uploaded by

Khakaan Mirza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
79 views1 page

Milton Friedman

Milton Friedman was a renowned American economist who received the 1976 Nobel Prize in Economics. He advocated for free-market capitalism and authored influential works like "Capitalism and Freedom." Friedman spent most of his career at the University of Chicago, where he helped establish an intellectual community. He is regarded as a leading free-market thinker and developed theories like monetarism and the permanent income hypothesis that challenged some Keynesian economic principles.

Uploaded by

Khakaan Mirza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Milton Friedman

Birth date: July 31, 1912


Died: November 16,2006

 Received the 1976 Nobel prize in Economic Sciences for his research on consumption analysis,
monetary history and the theory and the complexity of stabilisation policy.
 Milton Friedman was an influential economist who advocated for a free-market economy, and
whose work is reflected in his major books such as “Capitalism and Freedom (1962).”
 Most of Friedman’s impactful works during his career transpired at the University of Chicago.
 Friedman is regarded as an economist intellectual and free-market thinker – only comparable with
John Keynes.
Early life and Education:

 He attended Rutgers University under a state scholarship program where he earned his bachelor’s
degree in Economics and Statistics in 1932. One year later, Friedman earned a master’s degree at
Chicago University and obtained his Ph.D. at Columbia University in 1946. He later studied income
distribution in the U.S. at the National Bureau of Economic Research (NBER). At this point, he
focused his work on the analysis of income-expenditure surveys and, thereafter, worked on tax
research and statistical analysis.
 During WW1, Milton worked for the federal government as a mathematical statistician for military-
economic research at the Division of War Research and as an advisor of the U.S Department of the
Treasury. In 1942, he proposed the Keynesian policy of taxation and recommended increasing taxes
to curb wartime inflation and invented the first payroll withholding system.
Milton Friedmans contributions:

 After earning a Ph.D. in 1946, Friedman accepted an offer to teach economics at the University of
Chicago, where he played a role in establishing an intellectual community. The 1957 Theory of
Consumption Function marked his first literary breakthrough in the economic discipline.
 In connection with Friedman’s theory, he developed the permanent income hypothesis, which
explained why increasing tax in the short term reduces savings and maintains the level of static
consumption.
The Monetarism and Consumption Theory:

 Within the composition of the Keynesian theory, Friedman devised the theory of monetarism that
embodied a slightly adjusted economic policy. He outlined the role of monetarism and suggested
that monetary supply affects price levels. Friedman further criticized the Phillips Curve and the
Keynesian multiplier based on the theory of monetarism.
 In 1957, he proposed a treatise called A Theory of Consumption Function, whose viewpoint went
against that of the Keynesian’s. By introducing the term “permanent income,” he changed how
economists interpreted the consumption function.
John Maynard Keynes
Theory vs Milton
Friedmans Monetarist
View

You might also like