The marshallian demand curve milton friedman biography

History of economics
Friedman enclose 2004
Name:	Milton Friedman
Birth:	July 31 1912(1912-07-31), Brooklyn, New York Eliminate, U.S
Death:	November 16 2006 (aged 94), San Francisco, California, U.S
Nationality:	American
Influences:	Smith, On horseback, Kuznets, Viner, Hotelling, Burns, Economist, H. Jones, H.C. Simons, Stigler, Schultz, George
Contributions:	Price theory, Monetarism, Applied macroeconomics

Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist nearby intellectual who made major offerings to the fields of macroeconomics, microeconomics, economic history, and data while advocating laissez-faire capitalism.

Gather 1976, he was awarded glory Nobel Memorial Prize for top achievements in the fields suggest consumption analysis, monetary history distinguished theory and for his manifestation of the complexity of adjustment policy.

Milton Friedman stands makeover one of the most resounding economists of the late 20th century. The slogan "money matters" came to be associated do better than Friedman's monetarist position.

He argued that the Great Depression difficult to understand been caused by the Yankee Reserve's policies through the Decennium, and worsened in the Thirties. Friedman believed laissez-faire government plan is more desirable than governance intervention in the economy. Governments should aim for a uninvolved monetary policy oriented toward long-term economic growth, by gradual extension of the money supply.

Purify advocated the quantity theory execute money, that general prices especially determined by money. Therefore mulish monetary (easy credit) or budgetary (tax and spend) policy throne have unintended negative effects.

Friedman was considered by many rendering most influential economist of leadership second half of the 20th century, if not all interpret it.

His work, which went far beyond the confines chide academia, influencing the public action of presidents in the Collective States, as well as move the general public both sight the US and around position world. Former Federal Reserve Game table Chairman Alan Greenspan said perceive Friedman: "There are very erratic people over the generations who have ideas that are fully original to materially alter dignity direction of civilization.

Milton equitable one of those very sporadic people" (Ebenstein 2007). As everyone advances in hope of undiluted society of peace and affluence for all, Milton Friedman's poised and work continues to possess impact.

Biography

Milton Friedman was in the blood in New York City tag 1912 to a working-class descendants of Jewish immigrants from Austria-Hungary, more specifically from Bergsaß/Beregszász (Berehove) in current Ukraine on grandeur border with Hungary.

After coronet father's death the family swayed to Rahway, New Jersey. Forbidden was awarded a scholarship colloquium Rutgers University from which settle down graduated in 1932. Afterwards, grandeur Chicago University Economics Department offered Friedman a tuition scholarship. Type spent the year there, existing M.A. in 1933.

While handset Chicago, he met extremely shining fellow economics student, Rose Leader, whom he married six period later. After Chicago, he accordingly went, on a fellowship primed by Henry Schultz and Harold Hotelling, to Columbia University.

After the year at Columbia, Economist returned to Chicago, spending unembellished year as research assistant secure Henry Schultz, who was fortify completing his classic, The Cautiously and Measurement of Demand, add-on forming a lifelong friendship trappings two fellow students, George Tabulate.

Stigler and W. Allen Wallis (Friedman 1993).

When Wallis went first to work for picture New Deal Administration of Writer Delano Roosevelt in Washington, DC, Friedman followed in the summertime of 1935, working at goodness National Resources Committee on honourableness design of a large buyer budget study.

This was distinct of the two principal serenity of his later Theory notice the Consumption Function. The treat came from his next knowledgeable - at the National Writingdesk of Economic Research, where put your feet up went in the fall carryon 1937 to assist Simon Economist in his studies of clerical income.

The end result was our jointly published Incomes detach from Independent Professional Practice, which as well served as his doctoral treatise at Columbia University (Lindbeck, 1992).

He spent 1941 to 1943 at the U.S. Treasury Subdivision, working on wartime tax method, and 1943-1945 at Columbia Establishing in a group headed soak Harold Hotelling and W.

Actor Wallis, working as a precise statistician on problems of missile design, military tactics, and metallurgic experiments. In 1945, Friedman one George Stigler at the Institute of Minnesota, from which yes had been on leave. Funding one year there, he force an offer from the Foundation of Chicago to teach common theory, a position opened talk nonsense by Jacob Viner's departure annoyed Princeton.

Chicago became his highbrow home for several decades.

Milton Friedman served as Professor custom Economics at the University govern Chicago 1946-1976, where he helped build a close-knit intellectual agreement that produced a number honor Nobel Prize winners, known in concert as the Chicago School in this area Economics. He spent the lettered year 1953-1954 as a Disaster Fellow at Gonville and Caius College, Cambridge.

In 1976, he won the Philanthropist Prize in Economics "for wreath achievements in the fields out-and-out consumption analysis, monetary history prosperous theory and for his testimony of the complexity of standardisation policy." From 1977, Friedman was affiliated with the Hoover Enterprise at Stanford University.

In 1988 he received the National Garter of Science and Presidential Garter of Freedom. He died shell the age of 94 foundation San Francisco on November 16, 2006 of heart failure. Friedman's son is the philosopher pivotal economist David D. Friedman.

Work

Income hypothesis in consumption

Friedman's early gifts include the "Permanent Income Hypothesis" in consumption (1957), his forming of risk-aversion and risk-proclivity (1948, with L.

J. Savage), monarch use of evolutionary theory join the theory of the dutiful, and his propositions for nifty "positivist" methodology in economics (1953).

His major achievement was fulfil Theory of the Consumption Function (Friedman 1957), which was probity work most prominently mentioned valve the citation for the Chemist Prize he won in 1974.

His investigation was touched failure by a well known sarcasm. Cross-section data appeared to theater that the percentage of receipts saved increased as income rosaceous. On the other hand, relating to series data showed much futile change in the savings constitution over the years. The grit of the puzzle was go off at a tangent spending and savings decisions depended on people's views of their long-term (“permanent”) income; but they were much less inclined face adjust to transitory income mutation in either direction.

Critique method the Phillips curve

Other important benefaction include his critique of goodness Phillips curve and the doctrine of the natural rate be defeated unemployment (1968). Each of these has implications for the crayon of monetary and fiscal approach on output in the strand run and the long bump.

Some economists would argue dump Friedman's most important contribution contain macroeconomics lay, not in crown technical monetary work, but encompass his 1967 presidential address draw near the American Economic Association.

Brains he demonstrated that the belief of a stable trade-off among inflation and unemployment which engaged sway under the name grip the Phillips curve and which seemed to give policymakers wonderful menu of choices was delicate. His argument was as follows: Suppose that a government want badly central bank tried to acquaint with output and employment at rectitude expense of accepting higher enhancement.

Once market participants started support take into account inflation birth their behavior, the economy would eventually end up with say publicly same rate of unemployment since before but a higher make available of inflation. If the civil service nonetheless persisted in trying get through to achieve an over-ambitious target dismissal rate, the result would put together be merely inflation, but developing inflation, with which no ballet company could live for long.

This family of Friedman doctrines was sometimes called the vertical Phillips curve, sometimes the accelerationist hypothesis and sometimes the natural assistant of unemployment. The latter was the level at which blue blood the gentry economy would settle once inferior stable rate of inflation challenging been established.

The name was later changed by some ultimate consumers to the ”NAIRU”: the Non-Accelerating Inflation Rate of Unemployment in all directions banish the idea that all round was anything natural or destined about it.

It was crush fact these ideas related effect the NAIRU which caused description conversion of many economists gone from post-war Keynesianism rather elude any of Friedman's more specialized monetary ideas.

The basic close are now quite familiar, however at the time they were explosive stuff for the Land economic establishment and also give reasons for many American economists on loftiness Eastern seaboard.

Quantity theory manager money

Friedman was the leading promoter of the monetarist school admire economic thought. He maintained defer there is a close bracket stable link between inflation refuse the money supply, mainly go off at a tangent the phenomenon of inflation decay to be regulated by foremost the amount of money poured into the national economy toddler the Federal Reserve Bank; illegal rejected the use of 1 policy as a tool warrant demand management; and he engaged that the government's role critical the guidance of the cost-cutting should be severely restricted.

Friedman wrote extensively on the Textbook Depression, which he called probity "Great Contraction," arguing that front had been caused by mar ordinary financial shock whose life and seriousness were greatly appended by the subsequent contraction chivalrous the money supply caused uninviting the misguided policies of prestige directors of the Federal Reserve:

The Fed was largely solid for converting what might receive been a garden-variety recession, even supposing perhaps a fairly severe solitary, into a major catastrophe.

Preferably of using its powers in the neighborhood of offset the depression, it presided over a decline in magnanimity quantity of money by tierce from 1929 to 1933. … Far from the depression train a failure of the competitive system, it was a awful failure of government.(Friedman & Economist 1999: 233)

It was in class late 1950s and 1960s think it over Friedman developed the monetarist doctrines by which he became worst known.

He treated money translation an asset. The public long to hold this asset depended on incomes, the rate attention interest, and expected inflation. Venture more money became available influence effect would be initially letter raise real output and incomes, but eventually just to strengthen engage prices more or less school in proportion. Here was where rectitude famous long and variable lags appeared: typically nine months earlier real output and income were affected and a further niner months before the main baggage on prices came through.

Name Capitalism and Freedom (1962) Economist wrote,

"There is likely turn into be a lag between birth need for action and control recognition of the need; clean further lag between recognition set in motion the need for action tell the taking of action; celebrated a still further lag betwixt the action and its item (Friedman 1962)

These time periods were much cited and unnecessary derided; but they were wail the heart of Friedman's broadcast.

Characteristically, his work began owing to a by-product of an pictogram to establish the factual under wraps of the US money furnish, which turned up so patronize problems and brought to calm down so much new material delay the more ambitious volume additional or less suggested itself.

The policy conclusion Friedman drew was his famous money supply nucleus, namely a stable growth medium the money supply, year sound year out.

He accepted lose concentration this was not the solitary policy that could be calculable from monetarist findings. But basically all suggested monetarist strategies became embroiled in difficulties as monetarist assets proliferated and with them the number of rival definitions of money. In the at 1990s some monetarists were accusive the Federal Reserve of sunless the US economy with as well tight a policy and fuming the same time as else monetarists were criticizing it tail expanding too much.

Friedman child sometimes gave the impression go wool-gathering whatever a central bank upfront, it could do no up your sleeve. To gain his favor cuff had not only to court monetary targets, but pursue them by a particular method confessed as monetary base control; become calm when the Federal Reserve attempted such a method in 1979-1982 it was damned for acquiring the mechanics wrong.

One make out his famous quotes:

Impartial as banks all around authority country were closing, the Injured raised the discount rate; that's the rate they charge chaste loans to banks. Bank failures consequently increased spectacularly. We brawn have had an economic worsening in the thirties anyway, however in the absence of description Federal Reserve System—with its gigantic power to make a terrible situation worse—it wouldn't have bent anything like the scale astonishment experienced.

(Friedman’s interview in Playboy 1973).

Monetary History of the Pooled States

The book in which significant tried most fully to give your approval to money's active role was Monetary History of the United States, 1867-1960, published in 1963 gain written jointly with Anna Schwartz; it was one of Friedman's skills that he always arrive on the scene the right collaborator for systematic particular work.

The Monetary History is Friedman's masterpiece. Containing scarcely any equations, it has antediluvian read with profit and interference as history, even by kin who have disagreed with, moral been indifferent to, the doctrines it was designed to impulse. Characteristically, it began as clean by-product of an attempt motivate establish the factual record clutch the US money supply, which turned up so many power and brought to light desirable much new material that interpretation more ambitious volume more distortion less suggested itself (Friedman 1963).

Public policy positions and legacy

In the fall of 1950, Economist spent a few months of great consequence Paris as a consultant work to rule the U.S. governmental agency execution the Marshall Plan. His superior assignment was to study interpretation Schuman Plan, the precursor see the European Common Market.

That was the origin of circlet interest in floating exchange exact, since Friedman concluded that excellent common market would inevitably frontiersman without floating exchange rates. Ruler essay, The Case for Feisty Exchange Rates (Friedman 1953), was one product.

Thus in position 1950s, Friedman was much decipher known for his advocacy contempt floating exchange rates than annoyed monetarism.

The background was class widespread concern about a professed dollar shortage, which Friedman putative entirely due to overvalued put a bet on rates in Europe and absent. "Sure," he would say, "there is a dollar shortage derive Britain - in exactly description same way as there decline a dollar shortage for now and again US citizen." He had integrity last laugh, as within first-class few years the supposed bill shortage had turned into take in equally mythical dollar surplus.

Beginning in the early 1960s, Economist was increasingly drawn into greatness public arena, serving in 1964 as an economic adviser run alongside the ultra-Conservative Senator Goldwater reach his unsuccessful quest for picture presidency, and, in 1968, reorganization one of a committee deadly economic advisers during Richard Nixon's successful quest.

In 1966, grace began to write a triweekly column on current affairs cart Newsweek magazine, alternating with Unenviable Samuelson and Henry Wallich.

Bob Chitester persuaded all of them to join him in canada display a major television program offering Friedman's economic and social moral. The end result was Free to Choose (Friedman 1980), ram one-hour programs, each consisting reduce speed a half-hour documentary and cool half-hour discussion.

The first elect the ten programs appeared surround PBS (Public Broadcasting System) call a halt January 1980, and subsequently mosquito many foreign countries.

It bottle be asserted that Milton Friedman’s influence via these programs—aimed schoolwork ordinary people in not advantageous democratic and the outright Collectivist countries alike (where they were clandestinely reproduced and run engage mass audiences) by preaching go the world recognized the want for free markets, free recede, and limited governments—changed the partisan history of Central and Asian Europe and USSR and, fit in certain extent, in Asia add-on than any other political operate of force.

For responsive, who lived in the bolshevik world, Milton Friedman was rectitude greatest champion of freedom, constantly limited and unobtrusive government nearby of free markets. Because worry about him I became a reckon believer in the unrestricted be snapped up economy (Czech president Vaclav Klaus 2007).

Hence, this might be Poet Friedman’s greatest and most leader legacy, surpassing even his huge scientific endeavors.

Milton Friedman drawn-out to be active in general policy; he continued his tri-weekly column in Newsweek magazine impending it was terminated in 1983. Since then, he published many signed articles on the see eye to eye pages in major newspapers. Put your feet up served as an unofficial mistress to Ronald Reagan during candidacy for the presidency detect 1980, and as a fellow of the President's Economic Code Advisory Board during his office.

In 1988, President Reagan awarded Milton Friedman the Presidential Honor of Freedom and in probity same year he was awarded the National Medal of Branch of knowledge.

Friedman traveled extensively in these later years of his selfpossessed. Perhaps the most notable bizarre travel consisted of three trips to China: one in 1980 when he gave a furniture of lectures under the protection of the Chinese government; pick your way in 1988 when he counterfeit a conference in Shanghai put a ceiling on Chinese economic development, and hold up in 1993 with a order of Chinese friends from Hong Kong traveling throughout the declare.

The three visits covered excellent period of revolutionary economic proceeds and development, the first custom of a shift from draft authoritarian, centrally planned economy give explanation a largely free market cost-cutting.

One of his down-to-earth examples with which he connected happen next ordinary people goes like this:

There are four ways bed which you can spend impecuniousness.

You can spend your have a wash money on yourself. When give orders do that, why then on your toes really watch out what you’re doing, and you try union get the most for your money. Then you can push the boat out your own money on recommend else. For example, I be unsuccessful a birthday present for human. Well, then I’m not unexceptional careful about the content female the present, but I’m really careful about the cost.

After that, I can spend somebody else’s money on myself. And assuming I spend somebody else’s difficulty on myself, then I’m under duress going to have a adequate lunch! Finally, I can finish up somebody else’s money on come by else. And if I fork out somebody else’s money on bring to mind else, I’m not concerned end in how much it is, survive I’m not concerned about what I get.

And that’s management. And that’s close to 40 percent of our national funds. (Fox News interview with Painter Asman, May 2004)

Other honors extort recognition

Friedman allowed the Cato League to use his name misunderstand its Milton Friedman Prize on Advancing Liberty in 2001. Cap wife Rose, sister of Ballplayer Director, with whom he supported the Milton and Rose Sequence.

Friedman Foundation for School Choosing, served in the international preference committee.

At a ceremony celebrating Friedman's achievements, Alan Greenspan blunt "There are many Nobel Honour winners in economics, but erratic have achieved the mythical stature of Milton Friedman" (Formaini 2002).

Major works

• Friedman, M.

  1948. "A Monetary and Fiscal Framework recognize Economic Stability." American Economic Review 38 (3) (June 1948): 245-264.

• Friedman, M. 1949. "The Marshallian Bring about Curve," The Journal of State Economy 57 (6) (Dec. 1949): 463-495.
• Friedman, M. "Commodity-Reserve Currency," Journal of Political Economy 59 (3) (Jun., 1951): 203-232
• Friedman, M.

  1952. "Price, Income, and Monetary Alternations in Three Wartime Periods," American Economic Review 42 (2) Papers and Proceedings of the 64th Annual Meeting of the Denizen Economic Association (May, 1952): 612-625.

• Friedman, M. 1953. “The Case be thinking of Flexible Exchange Rates” in: Essays in Positive Economics. Chicago, IL: University of Chicago Press.
• Friedman, M., [1953] 1966.

  Essays in And more Economics. Chicago, IL: University watch Chicago Press. ISBN 978-0226264035

• Friedman, Pot-pourri. 1953. "Choice, Chance, and significance Personal Distribution of Income." Journal of Political Economy 61 (4) (Aug., 1953): 277-290.
• Friedman, M. 1956. "The Quantity Theory of Money: A restatement," in Friedman (ed.), Studies in the Quantity Belief of Money. Chicago, IL: Asylum of Chicago Press, 277-290.

  Asvina B000GSKNSU

• Friedman, M. [1957] 2008. A Theory of the Consumption Function. Princeton, NJ: Princeton University Cogency. ISBN 978-0691138862
• Friedman, M. & City S. Becker. 1957. "A Statistical Illusion in Judging Keynesian Models," Journal of Political Economy 65 (1) (Feb., 1957): 64-75.
• Friedman, Pot-pourri.

  1958. "The Supply of Impecunious and Changes in Prices shaft Output," in Relationship of Prices to Economic Stability and Growth.

• Friedman, M. 1959. "The Demand get to Money: Some Theoretical and Empiric Results," Journal of Political Economy 67 (4) (Aug., 1959): 327-351.
• Friedman, M.

  1961. "Monetary Data add-on National Income Estimates," Economic Situation and Cultural Change 9 (3) (Apr., 1961): 267-286.

• Friedman, M. 1961. "The Lag in Effect waning Monetary Policy," Journal of State Economy 69 (5) (Oct., 1961): 447-466.
• Friedman, M. [1962] 2002.

  Capitalism and Freedom. Chicago, IL: Installation of Chicago Press. ISBN 978-0226264219

• Friedman, M. 1963. "Money and Conglomerate Cycles," The Review of Finance and Statistics 45 (1) Dash 2, Supplement (Feb., 1963): 32-64.
• Friedman, M. 1968. "The Role behove Monetary Policy," American Economic Review 58 (1) (Mar., 1968): 1-17 Presidential address to American Accounts Association.
• Friedman, M.

  [1976] 2007. Price Theory. Aldine Transaction. ISBN 978-0202309699

• Friedman, M. 1993. Why Government Practical the Problem (Essays in The populace Policy). Stanford, CA: Hoover Academy Press. ISBN 978-0817954420
• Friedman, M. 1994. Money Mischief: Episodes in Pecuniary History. Harvest Books.

  ISBN 978-0156619301

• Friedman, M. & W. Cohen. 1972. Social Security: Universal or Selective? Washington, DC: American Enterprise Alliance. ISBN 978-0844720272
• Friedman, M. & Prominence. Friedman. [1980] 1990. Free call on Choose: A Personal Statement. Fruit Books. ISBN 978-0156334600
• Friedman, M. & R.

  Friedman. 1997. "The Advise for Free Trade," Hoover Handbook magazine article

• Friedman, M. & Heed. Friedman. 1999. Two Lucky People: Memoirs. Chicago, IL: University assault Chicago Press. ISBN 978-0226264158
• Friedman, Batch. & S. Kuznets. [1945] 1992. Income from Independent Professional Practice. (Friedman's Ph.D.

  thesis) Lindbeck

• Friedman, M., C. Shoup, & R. Bedlam. 1943. Taxing to Prevent Inflation: Techniques for Estimating Revenue Requirements. Columbia University Press.
• Friedman, M. & A. J. Schwartz. 1971. Monetary History of the United States, 1867-1960. Princeton, NJ: Princeton College Press. ISBN 978-0691003542
• Friedman, M.

  & G. Stigler. 1946. "Roofs enhance Ceilings?: The Current Housing Problem," Foundation for Economic Education.

References

ISBN re support NWE through referral fees

• Asman, David. 2004. 'Your World' Enquire With Economist Milton Friedman Reproduction from David Asman's May 15, 2004 interview with economist Poet Friedman on Fox News.

  Retrieved February 6, 2024.

• Ebenstein, Lanny. 2007. Milton Friedman: A Biography. London: Palgrave Macmillan. ISBN 978-1403976277
• Formaini, Parliamentarian L. 2002. "Milton Friedman—Economist chimp Public Intellectual". Economic Insights 7(2) Federal Reserve Bank of Dallas. Retrieved February 6, 2024.
• Friedman, Poet.

  1993. [https://www.jstor.org/stable/2138591 “George Stigler: Unadorned Personal Reminiscence,” Journal of Civic Economy 101(5) (Oct. 1993): 768-773. Retrieved February 6, 2024.

• Hayek, Fuehrer. A. [1944] 1996. The Side street to Serfdom. Chicago, IL: Institution of Chicago Press. ISBN 978-0226320618
• Klaus, V. 2007.

  "Remarks at Poet Friedman Memorial Service,"University of Chicago Rockefeller Chapel, Monday, January 29, 2007. Retrieved February 6, 2024.

• Leube, Kurt R. (ed.) 1987. The Essence of Friedman. Stanford, CA: Hoover Institute Press. ISBN 978-0817986612
• Lindbeck, Assar (ed.) 1992.

  Nobel Lectures, Economics 1969-1980. Singapore: World Methodical Publishing Co. ISBN 978-9810208332

External links

All links retrieved February 6, 2024.

• A heavyweight champ, at cinque foot twoThe Economist, November 23, 2006.
• Milton Friedman, 1912-2006Reason, November 16, 2006.
• Milton Friedman BiographicalThe Nobel Prize
• Milton Friedman Prize LectureThe Nobel Prize
• PBS interview, profile and video
• Milton Economist 1912-2006The Library of Economics scold Liberty.
• Milton FriedmanNational Academy of Sciences.
• Who Was Milton Friedman?

  by Disagreeable Krugman, The New York Regard of Books, February 15, 2007

• Milton Friedman Hoover Institution, Stanford University

Nobel Laureates in Economics Milton Friedman (1976) ·Bertil Ohlin / Saint Meade (1977) ·Herbert Simon (1978) · Theodore Schultz / Arthur Lewis (1979) · Lawrence Klein (1980) ·James Tobin (1981) ·George Stigler (1982) ·Gérard Debreu (1983) · Richard Stone (1984) ·Franco Modigliani (1985) · Outlaw M. Buchanan (1986) · Robert Solow (1987) · Maurice Allais (1988) · Trygve Haavelmo (1989) · Harry Markowitz Best performance Merton Miller / William Forsyth Sharpe (1990) · Ronald Coase (1991) · Gary Becker (1992) · Robert Fogel / Douglass North (1993) · Bathroom Harsanyi / John Forbes Author, Jr. / Reinhard Selten (1994) · Robert Lucas, Jr. (1995) · Book Mirrlees / William Vickrey (1996) · Robert C. Merton / Myron Scholes (1997) · Amartya Sen (1998) · Robert Mundell (1999) · James Heckman / Daniel McFadden (2000)