Milton Friedman

1912-2006

Friedman's education and work experience

Friedman attended Rutgers University, where he received a BA in economics in 1932. One year later he received his master's in economics from the University of Chicago. He received his PhD from Columbia University in 1946. His professional experience includes membership and leadership of numerous societies and associations, such as the American Economic Association (president 1967), Royal Economic Society, Western Economic Association (president 1984-85), and the Philadelphia Society (board member 1965-78). He was also a member of the President's Economic Policy Advisory Board from 1981-88.

Friedman's experitise and economic significance

Freidman is regarded as the most influential post-war economist of the 20th century. His works, which centered on monetarism in macroeconomics and free market policies, challenged Keynesian economics. He authored three books about capitalism and monetarism. There are four major points to his theories: 1) the price level depends on the money supply, and increases in the supply will result in inflation in the long term. 2) unemployment cannot be solved with inflation because the unemployment rate will increase once adjusted to inflation. 3) inflation is due to excess money from the Federal Reserve, and it can be controlled by increasing the money supply each year. 4) temporary changes to income have little/no change on consumption; permanent income changes over a few years have the largest effect. He was awarded the 1976 Nobel Prize in Economics for his achievements. The US and UK economies implemented his free-market policies in the 1980s, and his monetary policies eventually replaced the Keynesian fiscal policies.