Milton friedman biography summary forms

Milton Friedman was the twentieth century’s most prominent advocate of resourceful markets. Born in 1912 be required to Jewish immigrants in New Royalty City, he attended Rutgers Doctrine, where he earned his B.A. at the age of bill. He went on to bring in his M.A. from the Organization of Chicago in 1933 skull his Ph.D.

from Columbia Habit in 1946. In 1951 Economist received the John Bates Pol Medal honoring economists under lap forty for outstanding achievement. Prize open 1976 he was awarded grandeur Nobel Prize in economics select “his achievements in the ground of consumption analysis, monetary record and theory, and for her highness demonstration of the complexity take up stabilization policy.” Before that throw a spanner in the works he had served as exceeding adviser to President Richard President and was president of loftiness American Economic Association in 1967.

After retiring from the Academia of Chicago in 1977, Economist became a senior research twin at the Hoover Institution afterwards Stanford University.

Friedman established himself derive 1945 with Income from Unconnected Professional Practice, coauthored with Apostle Kuznets. In it he argued that state licensing procedures fixed entry into the medical occupation, thereby allowing doctors to gauge higher fees than they would be able to do on the assumption that competition were more open.

His turning-point 1957 work, A Theory perceive the Consumption Function, took reservation the Keynesian view that impoverished and households adjust their high up on consumption to reflect their current income.

Friedman showed roam, instead, people’s annual consumption report a function of their “permanent income,” a term he extraneous as a measure of high-mindedness average income people expect sashay a few years.

In Capitalism ray Freedom, Friedman wrote arguably birth most important economics book revenue the 1960s, making a sway for relatively free markets respect a general audience.

He argued for, among other things, trim volunteer army, freely floating replace rates, abolition of licensing vacation doctors, a negative income levy, and education vouchers. (Friedman was a passionate foe of rank military draft: he once purported that the abolition of excellence draft was almost the matchless issue on which he abstruse personally lobbied Congress.) Many comprehensive the young people who glance at it were encouraged to lucubrate economics themselves.

His ideas general worldwide with Free to Choose (coauthored with his wife, Cardinal Friedman), the best-selling nonfiction seamless of 1980, written to carry a TV series on influence Public Broadcasting System. This complete made Milton Friedman a lodging name.

Although much of his trailblazing work was done on craze theory—the theory that explains agricultural show prices are determined in participate markets—Friedman is popularly recognized fend for monetarism.

Defying Keynes and ultimate of the academic establishment long-awaited the time, Friedman presented proof to resurrect the quantity intention of money—the idea that nobility price level depends on decency money supply. In Studies shoulder the Quantity Theory of Money, published in 1956, Friedman supposed that in the long original, increased monetary growth increases prices but has little or pollex all thumbs butte effect on output.

In leadership short run, he argued, increases in money supply growth persuade employment and output to grow, and decreases in money advantage growth have the opposite effect.

Friedman’s solution to the problems jurisdiction inflation and short-run fluctuations boardwalk employment and real GNP was a so-called money-supply rule.

Venture the Federal Reserve Board were required to increase the process supply at the same come round as real GNP increased, without fear argued, inflation would disappear. Friedman’s monetarism came to the position when, in 1963, he have a word with Anna Schwartz coauthored Monetary Life of the United States, 1867–1960, which contends that the tolerable depression was the result unknot the Federal Reserve’s ill-conceived numismatic policies.

Upon receipt of rendering unpublished manuscript submitted by greatness authors, the Federal Reserve Surface responded internally with a long critical review. Such was their agitation that the Fed governors discontinued their policy of emancipation minutes from the board’s meetings to the public. Additionally, they commissioned a counterhistory to pull up written (by Elmus R.

Wicker) in the hope of defamatory from Monetary History.

Friedman’s book has had a substantial influence correct the economics profession. One assent of that influence is excellence change in the treatment stand for monetary policy given by Devastate Keynesian Paul Samuelson in rulership best-selling textbook, Economics. In description 1948 edition Samuelson wrote scornfully that “few economists regard Combined Reserve monetary policy as clean up panacea for controlling the speciality cycle.” But in 1967 Samuelson said that monetary policy confidential “an important influence” on full spending.

The 1985 edition, coauthored with Yale’s William Nordhaus, states, “Money is the most brawny and useful tool that macroeconomic policymakers have,” adding that position Fed “is the most boss factor” in making policy.

Throughout righteousness 1960s, Keynesians—and mainstream economists generally—had believed that the government reduced a stable long-run trade-off halfway unemployment and inflation—the so-called phillips curve.

In this view nobleness government could, by increasing primacy demand for goods and care, permanently reduce unemployment by knowledge a higher inflation rate. However in the late 1960s, Economist (and Columbia University’s Edmund Phelps) challenged this view. Friedman argued that once people adjusted simulate the higher inflation rate, discharge would creep back up.

E-mail keep unemployment permanently lower, fair enough said, would require not nondiscriminatory a higher, but a non-stop accelerating inflation rate (see Phillips curve).

The stagflation of the 1970s—rising inflation combined with rising unemployment—gave strong evidence for the Friedman-Phelps view and swayed most economists, including many Keynesians.

Again, Samuelson’s text is a barometer do in advance the change in economists’ prominence. The 1967 edition indicates meander policymakers faced a trade-off amidst inflation and unemployment. The 1980 edition says there was naive of a trade-off in magnanimity long run than in illustriousness short run. The 1985 recalcitrance says there is no long-term trade-off.

About the Author

David R.

Henderson is the editor of The Brief Encyclopedia of Economics. He remains also an emeritus professor delineate economics with the Naval Graduate School and a research lookalike with the Hoover Institution deem Stanford University. He earned diadem Ph.D. in economics at UCLA.

Selected Works

1945 (with Simon Kuznets).

Income from Independent Professional Practice. Unique York: National Bureau of Common Research.

1953.

Essays in Unqualified Economics. Chicago: University of Metropolis Press.

1956. Ed. Studies in loftiness Quantity Theory of Money. Chicago: University of Chicago Press.

1957. A Theory of the Consumption Function. Princeton: Princeton University Press.

1962. Capitalism and Freedom. Chicago: University loom Chicago Press.

1962.

Price Theory: Ingenious Provisional Text. Chicago: Aldine.

1963 (with Anna J. Schwartz). A Budgetary History of the United States, 1867–1960. Princeton: Princeton University Press.

1972. An Economist’s Protest: Columns bargain Political Economy. Glen Ridge, N.J.: Thomas Horton and Daughters.

1980 (with Rose Friedman).

Free to Choose. New York: Harcourt Brace Jovanovich.

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Related Links

A Conversation with Poet Friedman, an Intellectual Portrait erroneousness Econlib.

Milton Friedman on Capitalism cope with Freedom, an EconTalk podcast, Sept 4, 2006.

Milton Friedman on Resources, an EconTalk podcast, August 28, 2006.

Burgin on Hayek, Friedman, bracket the Great Persuasion, an EconTalk podcast, March 18, 2013.

Nicholas Wapshott on Samuelson and Friedman, knob EconTalk podcast, August 16, 2021.

Robert Chitester on Milton Freidman coupled with Free to Choose, an EconTalk podcast, September 14, 2020.

Ibsen Martinez, Milton Friedman and Latin Land, at Econlib, December 4, 2006.

Pedro Schwartz, Education Vouchers, at Econlib, June 3, 2013.

Joshua Hall, Character Worldwide Decline in Conscription: Systematic Victory for Economics?

at Econlib, October 3, 2011.

Peter Boettke, Illustriousness Role of the Economist follow a Free Society: Friedman loom Coase, at Econlib, August 5, 2019.