Milton Friedman

FriedmanFriedman, MiltonMiltonFriedmaniteM Friedman
Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy.wikipedia
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Phillips curve

Phillips effectPhillips-type relationtradeoff between inflation and unemployment
He argued that the Phillips curve was in the long run vertical at the "natural rate" and predicted what would come to be known as stagflation.
Samuelson and Solow made the connection explicit and subsequently Milton Friedman

Natural rate of unemployment

natural ratenatural" rate of unemploymentEquilibrium rate of unemployment
He theorized that there existed a "natural" rate of unemployment and argued that unemployment below this rate would cause inflation to accelerate.
Milton Friedman and Edmund Phelps, tackling this 'human' problem in the 1960s, both received the Nobel Prize in economics for their work, and the development of the concept is cited as a main motivation behind the prize.

Capitalism and Freedom

In his 1962 book Capitalism and Freedom, Friedman advocated policies such as a volunteer military, freely floating exchange rates, abolition of medical licenses, a negative income tax and school vouchers and opposed the war on drugs.
Capitalism and Freedom is a book by Milton Friedman originally published in 1962 by the University of Chicago Press which discusses the role of economic capitalism in liberal society.

School voucher

school voucherseducation vouchervouchers
In his 1962 book Capitalism and Freedom, Friedman advocated policies such as a volunteer military, freely floating exchange rates, abolition of medical licenses, a negative income tax and school vouchers and opposed the war on drugs.
Milton Friedman argued for the modern concept of vouchers in the 1950s, stating that competition would improve schools, cost less and yield superior educational outcomes.

Monetarism

monetaristmonetaristsmonetarist school
Friedman promoted an alternative macroeconomic viewpoint known as "monetarism" and argued that a steady, small expansion of the money supply was the preferred policy.
Monetarism today is mainly associated with the work of Milton Friedman, who was among the generation of economists to accept Keynesian economics and then criticise Keynes's theory of fighting economic downturns using fiscal policy (government spending).

Gary Becker

Gary S. BeckerNew Home EconomicsBecker
Several students and young professors who were recruited or mentored by Friedman at Chicago went on to become leading economists, including Gary Becker, Robert Fogel, Thomas Sowell and Robert Lucas Jr.
According to Milton Friedman, he was “the greatest social scientist who has lived and worked" in the second part of the twentieth century.

Chicago school of economics

Chicago SchoolChicago school economistsChicago
With George Stigler and others, Friedman was among the intellectual leaders of the second generation of Chicago school of economics, a methodological movement at the University of Chicago's Department of Economics, Law School and Graduate School of Business from the 1940s onward.
Nonetheless, these scholars had an important influence on the thought of Milton Friedman and George Stigler who were the leaders of the second-generation Chicago school, most notably in the development of price theory and transaction cost economics.

Negative income tax

negative taxation
In his 1962 book Capitalism and Freedom, Friedman advocated policies such as a volunteer military, freely floating exchange rates, abolition of medical licenses, a negative income tax and school vouchers and opposed the war on drugs.
It was described by British politician Juliet Rhys-Williams in the 1940s and later by American free-market economist Milton Friedman.

Monetary policy

monetarymonetary policiesexpansionary monetary policy
His ideas concerning monetary policy, taxation, privatization and deregulation influenced government policies, especially during the 1980s. Later, Friedman and his colleague Anna Schwartz wrote A Monetary History of the United States, 1867–1960, which argued that the Great Depression was caused by a severe monetary contraction due to banking crises and poor policy on the part of the Federal Reserve.
These included Milton Friedman who early in his career advocated that government budget deficits during recessions be financed in equal amount by money creation to help to stimulate aggregate demand for output.

EdChoice

Friedman Foundation for Educational ChoiceFoundation for Educational ChoiceMilton and Rose D. Friedman Foundation
His support for school choice led him to found the Friedman Foundation for Educational Choice, later renamed EdChoice.
It was founded in 1996 by Nobel laureate Milton Friedman and economist Rose Director Friedman, who were married.

Milton Friedman bibliography

Friedman's works
Friedman's works include monographs, books, scholarly articles, papers, magazine columns, television programs, and lectures, and cover a broad range of economic topics and public policy issues.
The following is a list of works by the prominent American economist Milton Friedman.

University of Chicago

The University of ChicagoChicagoChicago University
With George Stigler and others, Friedman was among the intellectual leaders of the second generation of Chicago school of economics, a methodological movement at the University of Chicago's Department of Economics, Law School and Graduate School of Business from the 1940s onward.
In economics, the university has played an important role in shaping ideas about the free market and is the namesake of the Chicago school of economics, the school of economic thought supported by Milton Friedman and other economists.

Great Depression

DepressionThe Great DepressionDepression era
During his time at Rutgers, Friedman became influenced by two economics professors, Arthur F. Burns and Homer Jones, who convinced him that modern economics could help end the Great Depression. Later, Friedman and his colleague Anna Schwartz wrote A Monetary History of the United States, 1867–1960, which argued that the Great Depression was caused by a severe monetary contraction due to banking crises and poor policy on the part of the Federal Reserve.
Today the controversy is of lesser importance since there is mainstream support for the debt deflation theory and the expectations hypothesis that — building on the monetary explanation of Milton Friedman and Anna Schwartz — add non-monetary explanations.

Conservative Party (UK)

ConservativeConservative PartyConservatives
Friedman was an advisor to Republican President Ronald Reagan and Conservative British Prime Minister Margaret Thatcher.
To replace the old post-war consensus, she built a right-wing political ideology that became known as Thatcherism, based on social and economic ideas from British and American intellectuals such as Friedrich Hayek and Milton Friedman.

Consumption (economics)

consumptiondomestic consumptionspending
Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy.
Criticism of this assumption led to the development of Milton Friedman's permanent income hypothesis and Franco Modigliani's life cycle hypothesis.

Stagflation

high unemployment and inflationeconomic downturnglobal inflation
He argued that the Phillips curve was in the long run vertical at the "natural rate" and predicted what would come to be known as stagflation.
The explanation for the shift of the Phillips curve was initially provided by the monetarist economist Milton Friedman, and also by Edmund Phelps.

School choice

Open enrollmenteducational choicechoice
His support for school choice led him to found the Friedman Foundation for Educational Choice, later renamed EdChoice.
Economist and Nobel laureate Milton Friedman proposed in 1955 using free market principles to improve the United States public school system.

Frank Knight

Frank H. KnightFrank Hyneman KnightFrank H Knight
He was strongly influenced by Jacob Viner, Frank Knight, and Henry Simons.
Nobel laureates Milton Friedman, George Stigler and James M. Buchanan were all students of Knight at Chicago.

Thomas Sowell

SowellSowell, ThomasTom Sowell
Several students and young professors who were recruited or mentored by Friedman at Chicago went on to become leading economists, including Gary Becker, Robert Fogel, Thomas Sowell and Robert Lucas Jr.
Since 1980, he has been a Senior Fellow of the Hoover Institution at Stanford University, where he holds a fellowship named after Rose and Milton Friedman, his mentor.

George Stigler

George J. StiglerStiglerStigler, George J.
With George Stigler and others, Friedman was among the intellectual leaders of the second generation of Chicago school of economics, a methodological movement at the University of Chicago's Department of Economics, Law School and Graduate School of Business from the 1940s onward.
Milton Friedman, a friend for over 60 years, commented that it was remarkable for Stigler to have passed his dissertation under Knight, as only three or four students had ever managed to do so in Knight's 28 years at Chicago.

Permanent income hypothesis

permanent incomepermanent income theory
This work resulted in their jointly authored publication Incomes from Independent Professional Practice, which introduced the concepts of permanent and transitory income, a major component of the Permanent Income Hypothesis that Friedman worked out in greater detail in the 1950s.
First developed by Milton Friedman, it supposes that a person's consumption at a point in time is determined not just by their current income but also by their expected income in future years—their "permanent income".

Arthur F. Burns

Arthur BurnsArthur Frank BurnsArthur-F.-Burns
During his time at Rutgers, Friedman became influenced by two economics professors, Arthur F. Burns and Homer Jones, who convinced him that modern economics could help end the Great Depression.
Burns through his lectures became one of two professors, the other being Homer Jones, credited by Milton Friedman as a key influence for his decision to become an economist.

Margaret Thatcher

ThatcherBaroness ThatcherThatcherite
Friedman was an advisor to Republican President Ronald Reagan and Conservative British Prime Minister Margaret Thatcher.
Thatcher's economic policy was influenced by monetarist thinking and economists such as Milton Friedman and Alan Walters.

Robert Lucas Jr.

Robert Lucas, Jr.Robert LucasRobert E. Lucas
Several students and young professors who were recruited or mentored by Friedman at Chicago went on to become leading economists, including Gary Becker, Robert Fogel, Thomas Sowell and Robert Lucas Jr.
He also provided sound theory fundamental to Milton Friedman and Edmund Phelps's view of the long-run neutrality of money, and provide an explanation of the correlation between output and inflation, depicted by the Phillips curve.

Anna Schwartz

Anna J. SchwartzAnna Jacobson SchwartzSchwartz
Later, Friedman and his colleague Anna Schwartz wrote A Monetary History of the United States, 1867–1960, which argued that the Great Depression was caused by a severe monetary contraction due to banking crises and poor policy on the part of the Federal Reserve.
Schwartz collaborated with Milton Friedman on A Monetary History of the United States, 1867–1960, which was published in 1963.[[Anna Schwartz#cite note-2| [2] ]] This book placed the blame for the Great Depression at the door of the Federal Reserve System.