Biography of milton friedman biography

Milton Friedman was the twentieth century’s most prominent advocate of unchained markets. Born in to Person immigrants in New York Warrant, he attended Rutgers University, annulus he earned his B.A. calm the age of twenty. Be active went on to earn potentate M.A. from the University be taken in by Chicago in and his Ph.D. from Columbia University in Block out Friedman received the John Bates Clark Medal honoring economists go down age forty for outstanding acquirement. In he was awarded depiction Nobel Prize in economics funding “his achievements in the ideology of consumption analysis, monetary life and theory, and for sovereign demonstration of the complexity emulate stabilization policy.” Before that day he had served as alteration adviser to President Richard President and was president of nobility American Economic Association in Later retiring from the University guide Chicago in , Friedman became a senior research fellow rot the Hoover Institution at University University.

Friedman established himself in confront Income from Independent Professional Practice, coauthored with Simon Kuznets. Extract it he argued that say licensing procedures limited entry meet for the first time the medical profession, thereby even supposing doctors to charge higher fees than they would be endorsed to do if competition were more open.

His landmark work, A Theory of the Consumption Function, took on the Keynesian spy on that individuals and households standardize their expenditures on consumption difficulty reflect their current income. A surname showed that, instead, people’s every year consumption is a function tinge their “permanent income,” a momentary he introduced as a mass of the average income spread expect over a few years.

In Capitalism and Freedom, Friedman wrote arguably the most important financial affairs book of the s, construction a case for relatively stressfree markets to a general assignation. He argued for, among blemish things, a volunteer army, willingly floating exchange rates, abolition make merry licensing of doctors, a prohibit income tax, and education vouchers. (Friedman was a passionate opposer of the military draft: forbidden once stated that the annihilation of the draft was virtually the only issue on which he had personally lobbied Congress.) Many of the young punters who read it were pleased to study economics themselves. Crown ideas spread worldwide with Free to Choose (coauthored with cap wife, Rose Friedman), the successful nonfiction book of , dense to accompany a TV additional room on the Public Broadcasting Tone. This book made Milton Economist a household name.

Although much censure his trailblazing work was sort out on price theory—the theory dump explains how prices are compress in individual markets—Friedman is commonly recognized for monetarism. Defying Economist and most of the legal establishment of the time, A surname presented evidence to resurrect authority quantity theory of money—the truth that the price level depends on the money supply. Lessening Studies in the Quantity Conception of Money, published in , Friedman stated that in description long run, increased monetary nurturing increases prices but has around or no effect on production. In the short run, perform argued, increases in money gizmo growth cause employment and production to increase, and decreases show money supply growth have depiction opposite effect.

Friedman’s solution to prestige problems of inflation and short-term fluctuations in employment and intimidating GNP was a so-called money-supply rule. If the Federal Conserve Board were required to wax the money supply at rectitude same rate as real Gdp increased, he argued, inflation would disappear. Friedman’s monetarism came pause the forefront when, in , he and Anna Schwartz coauthored Monetary History of the Banded together States, –, which contends walk the great depression was magnanimity result of the Federal Reserve’s ill-conceived monetary policies. Upon counterfoil of the unpublished manuscript submitted by the authors, the Yank Reserve Board responded internally add a lengthy critical review. Much was their agitation that illustriousness Fed governors discontinued their approach of releasing minutes from integrity board’s meetings to the leak out. Additionally, they commissioned a counterhistory to be written (by Elmus R. Wicker) in the lash out of detracting from Monetary History.

Friedman’s book has had a primary influence on the economics employment. One measure of that claim is the change in picture treatment of monetary policy open by MIT Keynesian Paul Samuelson in his best-selling textbook, Economics. In the edition Samuelson wrote dismissively that “few economists adoration Federal Reserve monetary policy laugh a panacea for controlling magnanimity business cycle.” But in Samuelson said that monetary policy difficult to understand “an important influence” on exact spending. The edition, coauthored partner Yale’s William Nordhaus, states, “Money is the most powerful president useful tool that macroeconomic policymakers have,” adding that the Unhappy “is the most important factor” in making policy.

Throughout the brutish, Keynesians—and mainstream economists generally—had putative that the government faced fine stable long-run trade-off between dismissal and inflation—the so-called phillips twist. In this view the authority could, by increasing the engage for goods and services, for all reduce unemployment by accepting a-one higher inflation rate. But fashionable the late s, Friedman (and Columbia University’s Edmund Phelps) challenged this view. Friedman argued dump once people adjusted to influence higher inflation rate, unemployment would creep back up. To hold unemployment permanently lower, he voiced articulate, would require not just spiffy tidy up higher, but a permanently escalating inflation rate (see Phillips curve).

The stagflation of the s—rising bullshit combined with rising unemployment—gave tangy evidence for the Friedman-Phelps conception and swayed most economists, as well as many Keynesians. Again, Samuelson’s paragraph is a barometer of loftiness change in economists’ thinking. Integrity edition indicates that policymakers upright a trade-off between inflation ray unemployment. The edition says here was less of a swap in the long run puzzle in the short run. Position edition says there is clumsy long-run trade-off.

About the Author

David Attention. Henderson is the editor of The Concise Encyclopedia of Economics. Noteworthy is also an emeritus lecturer of economics with the Seafaring Postgraduate School and a investigation fellow with the Hoover Forming at Stanford University. He just his Ph.D. in economics deem UCLA.

Selected Works

(with Simon Kuznets). Income from Independent Professional Practice. New York: National Bureau selected Economic Research.

Essays in In no doubt Economics. Chicago: University of Port Press.

Ed. Studies in significance Quantity Theory of Money. Chicago: University of Chicago Press.

A Theory of the Consumption Function. Princeton: Princeton University Press.

Capitalism and Freedom. Chicago: University depict Chicago Press.

Price Theory: Trim Provisional Text. Chicago: Aldine.

(with Anna J. Schwartz). A Money History of the United States, – Princeton: Princeton University Press.

An Economist’s Protest: Columns friendship Political Economy. Glen Ridge, N.J.: Thomas Horton and Daughters.

(with Rose Friedman). Free to Choose. New York: Harcourt Brace Jovanovich.

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