During the latter half of the 1940s, Friedman began a collaboration with Anna Schwartz, an economic historian at the Bureau, that would ultimately result in the 1963 publication of a book co-authored by Friedman and Schwartz, A Monetary History of the United States, 1867–1960. Friedman spent the 1954–1955 academic year as a Fulbright Visiting Fellow at Gonville and Caius College, Cambridge.
He co-authored, with Anna Schwartz, A Monetary History of the United States, 1867–1960 (1963), which was an examination of the role of the money supply and economic activity in the U.S.
Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician 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.
possibly of all of it". == Early life == Friedman was born in Brooklyn, New York on July 31, 1912.
A talented student and an avid reader, Friedman graduated from Rahway High School in 1928, just before his 16th birthday.
Friedman wrote extensively on the Great Depression, and he termed the 1929–1933 period the Great Contraction.
He argued that the Depression had been caused by an ordinary financial shock whose duration and seriousness were greatly increased by the subsequent contraction of the money supply caused by the misguided policies of the directors of the Federal Reserve. This theory was put forth in A Monetary History of the United States, and the chapter on the Great Depression was then published as a stand-alone book entitled The Great Contraction, 1929–1933.
To date, most countries have adopted inflation targeting instead of the k-percent rule. Idealistically, Friedman actually favored the principles of the 1930s Chicago plan, which would have ended fractional reserve banking and, thus, private money creation.
He graduated from Rutgers in 1932. Friedman initially intended to become an actuary or mathematician, however the state of the economy, which was at this point in a deep depression, convinced him to become an economist.
He first met his wife, Rose Friedman (née Director), at the University of Chicago in 1932, and later wed six years later, in 1938. Friedman was noticeably shorter than some of his colleagues; he measured , and has been described as an "Elfin Libertarian" by Binyamin Appelbaum. Rose Friedman, when asked about Friedman's successes, said that “I have never had the desire to compete with Milton professionally (perhaps because I was smart enough to recognize I couldn't).
Friedman chose the latter, earning a Master of Arts degree in 1933.
Friedman met his future wife, economist Rose Director, while at the University of Chicago. During the 1933–1934 academic year, he had a fellowship at Columbia University, where he studied statistics with statistician and economist Harold Hotelling.
He was back in Chicago for the 1934–1935 academic year, working as a research assistant for Henry Schultz, who was then working on Theory and Measurement of Demand. During the aforementioned 1934-35 academic year, Friedman formed what would later prove to be lifetime friendships with George Stigler and W.
Allen Wallis, both of whom teached with Friedman at the University of Chicago. == Public service == Friedman was unable to find academic employment, so in 1935 he followed his friend W.
Shiller describes the book as the "most influential account" of the Great Depression. During 1935, he began working for the National Resources Planning Board, which was then working on a large consumer budget survey.
Friedman began employment with the National Bureau of Economic Research during the autumn of 1937 to assist Simon Kuznets in his work on professional income.
He first met his wife, Rose Friedman (née Director), at the University of Chicago in 1932, and later wed six years later, in 1938. Friedman was noticeably shorter than some of his colleagues; he measured , and has been described as an "Elfin Libertarian" by Binyamin Appelbaum. Rose Friedman, when asked about Friedman's successes, said that “I have never had the desire to compete with Milton professionally (perhaps because I was smart enough to recognize I couldn't).
Barriers to entry are a fixed cost which must be incurred regardless of any outside factors such as work experience, or other factors of [capital]. During 1940, Friedman was appointed as an assistant professor teaching Economics at the University of Wisconsin–Madison, but encountered anti semitism in the Economics department and returned to government service.
Allen Wallis and Harold Hotelling), where he spent the rest of World War II working as a mathematical statistician, focusing on problems of weapons design, military tactics, and metallurgical experiments. In 1945, Friedman submitted Incomes from Independent Professional Practice (co-authored with Kuznets and completed during 1940) to Columbia as his doctoral dissertation.
During the latter half of the 1940s, Friedman began a collaboration with Anna Schwartz, an economic historian at the Bureau, that would ultimately result in the 1963 publication of a book co-authored by Friedman and Schwartz, A Monetary History of the United States, 1867–1960. Friedman spent the 1954–1955 academic year as a Fulbright Visiting Fellow at Gonville and Caius College, Cambridge.
From 1941 to 1943 Friedman worked on wartime tax policy for the federal government, as an advisor to senior officials of the United States Department of the Treasury.
As a Treasury spokesman during 1942, he advocated a Keynesian policy of taxation.
From 1941 to 1943 Friedman worked on wartime tax policy for the federal government, as an advisor to senior officials of the United States Department of the Treasury.
In 1943, Friedman joined the Division of War Research at Columbia University (headed by W.
Allen Wallis and Harold Hotelling), where he spent the rest of World War II working as a mathematical statistician, focusing on problems of weapons design, military tactics, and metallurgical experiments. In 1945, Friedman submitted Incomes from Independent Professional Practice (co-authored with Kuznets and completed during 1940) to Columbia as his doctoral dissertation.
Friedman spent the 1945–1946 academic year teaching at the University of Minnesota (where his friend George Stigler was employed).
On February 12, 1945, his only son, David D.
The university awarded him a PhD in 1946.
Friedman, who would later follow in his father's footsteps and an economist was born. === University of Chicago === In 1946, Friedman accepted an offer to teach economic theory at the University of Chicago (a position opened by departure of his former professor Jacob Viner to Princeton University).
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.
Friedman talks about the need to move to a classically liberal society, that free markets would help nations and individuals in the long-run and fix the efficiency problems currently faced by the United States and other major countries of the 1950s and 1960s.
The case was articulated in an influential 1953 paper, "The Case for Flexible Exchange Rates," at a time when most commentators regarded the possibility of floating exchange rates as an unrealistic policy proposal. === Foreign Policy === In his 1955 article "The Role of Government in Education" Friedman proposed supplementing publicly operated schools with privately run but publicly funded schools through a system of school vouchers.
During the latter half of the 1940s, Friedman began a collaboration with Anna Schwartz, an economic historian at the Bureau, that would ultimately result in the 1963 publication of a book co-authored by Friedman and Schwartz, A Monetary History of the United States, 1867–1960. Friedman spent the 1954–1955 academic year as a Fulbright Visiting Fellow at Gonville and Caius College, Cambridge.
The case was articulated in an influential 1953 paper, "The Case for Flexible Exchange Rates," at a time when most commentators regarded the possibility of floating exchange rates as an unrealistic policy proposal. === Foreign Policy === In his 1955 article "The Role of Government in Education" Friedman proposed supplementing publicly operated schools with privately run but publicly funded schools through a system of school vouchers.
This work was originally published in 1957 by Princeton University Press, and it reanalyzed the relationship displayed "between aggregate consumption or aggregate savings and aggregate income." Friedman's counterpart Keynes believed people would modify their household consumption expenditures to relate to their existing income levels.
During the 1960s he became the main advocate opposing Keynesian government policies, and described his approach (along with mainstream economics) as using "Keynesian language and apparatus" yet rejecting its initial conclusions.
Friedman talks about the need to move to a classically liberal society, that free markets would help nations and individuals in the long-run and fix the efficiency problems currently faced by the United States and other major countries of the 1950s and 1960s.
On the other hand, he has always made me feel that his achievement is my achievement." During the 1960s, Friedman built, and subsequently maintained a cottage in Fairlee, Vermont.
Moreover, new classical adherent Neil Wallace, who was a graduate student at the University of Chicago between 1960 and 1963, regarded Friedman's theoretical courses as a mess, highlighting the strained relationship between Monetarism and new classical schools. Friedman was also known for his work on the consumption function, the permanent income hypothesis (1957), which Friedman himself referred to as his best scientific work.
Nash, a leading historian of American conservatism, says that by "the end of the 1960s he was probably the most highly regarded and influential conservative scholar in the country, and one of the few with an international reputation." In 1971, Friedman received the Golden Plate Award of the American Academy of Achievement.
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 opposition to the war on drugs and support for drug liberalization policies.
It was published in 1962 by the University of Chicago Press and consists of essays that used non-mathematical economic models to explore issues of public policy.
It sold over 400,000 copies in the first eighteen years and more than half a million since 1962.
Above all, if some public goods are provided by the state, he believed that they should not be a legal monopoly where private competition is prohibited; for example, he wrote: In 1962, Friedman criticized Social Security in his book Capitalism and Freedom, arguing that it had created welfare dependency.
During the latter half of the 1940s, Friedman began a collaboration with Anna Schwartz, an economic historian at the Bureau, that would ultimately result in the 1963 publication of a book co-authored by Friedman and Schwartz, A Monetary History of the United States, 1867–1960. Friedman spent the 1954–1955 academic year as a Fulbright Visiting Fellow at Gonville and Caius College, Cambridge.
Moreover, new classical adherent Neil Wallace, who was a graduate student at the University of Chicago between 1960 and 1963, regarded Friedman's theoretical courses as a mess, highlighting the strained relationship between Monetarism and new classical schools. Friedman was also known for his work on the consumption function, the permanent income hypothesis (1957), which Friedman himself referred to as his best scientific work.
In a spring 2006 interview, Friedman said the US's stature in the world had been eroded by the Iraq War, but that it might be improved if Iraq were to become a peaceful and independent country. === Libertarianism and the Republican Party === Friedman was an economic advisor and speech writer in Barry Goldwater's failed presidential campaign in 1964.
Later his weekly columns for Newsweek magazine (1966–84) were well read and increasingly influential among political and business people, and helped earn the magazine a Gerald Loeb Special Award in 1968.
From 1968 to 1978, he and Paul Samuelson participated in the Economics Cassette Series, a biweekly subscription series where the economist would discuss the days' issues for about a half-hour at a time. ==== A Theory of the Consumption Function ==== One of Milton Friedman's most popular works, A Theory of the Consumption Function, challenged traditional Keynesian viewpoints about the household.
Nash, a leading historian of American conservatism, says that by "the end of the 1960s he was probably the most highly regarded and influential conservative scholar in the country, and one of the few with an international reputation." In 1971, Friedman received the Golden Plate Award of the American Academy of Achievement.
Some economists, such as Institutional economist and 1974 Nobel Prize winner Gunnar Myrdal, criticized Friedman, and Myrdal's own 1974 Nobel Prize partner Friedrich Hayek, for being reactionaries.
In a debate between Tsang and his rival Alan Leong before the 2007 Hong Kong Chief Executive election, Leong introduced the topic and jokingly accused Tsang of angering Friedman to death (Friedman had died only a year prior). === Chile === During 1975, two years after the military coup that brought military dictator President Augusto Pinochet to power and ended the government of Salvador Allende, the economy of Chile experienced a severe crisis.
One of the lectures was entitled "The Fragility of Freedom" and according to Friedman, "dealt with precisely the threat to freedom from a centralized military government." In a letter to Pinochet of April 21, 1975, Friedman considered the "key economic problems of Chile are clearly ...
Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician 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.
His monetary theory influenced the Federal Reserve's monetary policy in response to the global financial crisis of 2007–2008. After retiring from the University of Chicago in 1977, and becoming Emeritus professor in economics in 1983, Friedman was an advisor to Republican President Ronald Reagan and Conservative British Prime Minister Margaret Thatcher.
He recounts how the best of a country's abilities come from its free markets while its failures come from government intervention. == Post-retirement == In 1977, at the age of 65, Friedman retired from the University of Chicago after teaching there for 30 years.
From 1977 on, he was affiliated with the Hoover Institution at Stanford University. During 1977, Friedman was approached by Bob Chitester and the Free to Choose Network.
Friedman also had an apartment in Russian Hill, San Francisco, where he lived from 1977 until his death. === Religious views === According to a 2007 article in Commentary magazine, his "parents were moderately observant Jews, but Friedman, after an intense burst of childhood piety, rejected religion altogether." He described himself as an agnostic.
From 1968 to 1978, he and Paul Samuelson participated in the Economics Cassette Series, a biweekly subscription series where the economist would discuss the days' issues for about a half-hour at a time. ==== A Theory of the Consumption Function ==== One of Milton Friedman's most popular works, A Theory of the Consumption Function, challenged traditional Keynesian viewpoints about the household.
The Fed's inability to meet its money supply targets from 1978–1982 led some to conclude it is not a feasible alternative to more conventional inflation and interest rate targeting.
His ideas concerning monetary policy, taxation, privatization and deregulation influenced government policies, especially during the 1980s.
They asked him to create a television program presenting his economic and social philosophy. Friedman and his wife Rose worked on this project for the next three years, and during 1980, the ten-part series, titled Free to Choose, was broadcast by the Public Broadcasting Service (PBS).
The companion book to the series (co-authored by Milton and his wife, Rose Friedman), also titled Free To Choose, was the bestselling nonfiction book of 1980. Friedman served as an unofficial adviser to Ronald Reagan during his 1980 presidential campaign, and then served on the President's Economic Policy Advisory Board for the rest of the Reagan Administration.
Throughout the 1980s and 1990s, Friedman continued to write editorials and appear on television.
Reforms similar to those proposed in the article were implemented in, for example, Chile in 1981 and Sweden in 1992.
He served as a member of President Reagan's Economic Policy Advisory Board starting in 1981.
His monetary theory influenced the Federal Reserve's monetary policy in response to the global financial crisis of 2007–2008. After retiring from the University of Chicago in 1977, and becoming Emeritus professor in economics in 1983, Friedman was an advisor to Republican President Ronald Reagan and Conservative British Prime Minister Margaret Thatcher.
accomplish wonderful things", they "cannot ensure a distribution of income that enables all citizens to meet basic economic needs". Michael Walker of the Fraser Institute and Friedman hosted a series of conferences from 1986 to 1994.
Ebenstein says Friedman was "the 'guru' of the Reagan administration." In 1988 he received the National Medal of Science and Reagan honored him with the Presidential Medal of Freedom. Friedman is known now as one of the most influential economists of the 20th century.
In 1988, he received the Presidential Medal of Freedom and the National Medal of Science. Friedman stated that he was a libertarian philosophically, but a member of the U.S.
Throughout the 1980s and 1990s, Friedman continued to write editorials and appear on television.
Reforms similar to those proposed in the article were implemented in, for example, Chile in 1981 and Sweden in 1992.
accomplish wonderful things", they "cannot ensure a distribution of income that enables all citizens to meet basic economic needs". Michael Walker of the Fraser Institute and Friedman hosted a series of conferences from 1986 to 1994.
However, Friedman did state in a 1995 interview that he was an anti-interventionist.
In 1996, Friedman, together with his wife, founded the Friedman Foundation for Educational Choice to advocate school choice and vouchers.
Friedman wrote extensively of his life and experiences, especially in 1998 in his memoirs with his wife, Rose, titled Two Lucky People.
Friedman allowed the libertarian Cato Institute to use his name for its biannual (occuring every two years) Milton Friedman Prize for Advancing Liberty beginning in 2001.
A Friedman Prize was given to the late British economist Peter Bauer in 2002, Peruvian economist Hernando de Soto in 2004, Mart Laar, former Estonian Prime Minister in 2006 and a young Venezuelan student Yon Goicoechea in 2008.
A Friedman Prize was given to the late British economist Peter Bauer in 2002, Peruvian economist Hernando de Soto in 2004, Mart Laar, former Estonian Prime Minister in 2006 and a young Venezuelan student Yon Goicoechea in 2008.
During 2005, Friedman and more than 500 other economists advocated discussions regarding the economic benefits of the legalization of marijuana. Friedman was also a supporter of gay rights.
Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician 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.
However, just as, when I was a child, my mother had permitted me to have a Christmas tree one year when my friend had one, she not only tolerated our having a Christmas tree, she even strung popcorn to hang on it." === Death === Friedman died of [failure] at the age of 94 years in San Francisco on November 16, 2006.
In a spring 2006 interview, Friedman said the US's stature in the world had been eroded by the Iraq War, but that it might be improved if Iraq were to become a peaceful and independent country. === Libertarianism and the Republican Party === Friedman was an economic advisor and speech writer in Barry Goldwater's failed presidential campaign in 1964.
A Friedman Prize was given to the late British economist Peter Bauer in 2002, Peruvian economist Hernando de Soto in 2004, Mart Laar, former Estonian Prime Minister in 2006 and a young Venezuelan student Yon Goicoechea in 2008.
His monetary theory influenced the Federal Reserve's monetary policy in response to the global financial crisis of 2007–2008. After retiring from the University of Chicago in 1977, and becoming Emeritus professor in economics in 1983, Friedman was an advisor to Republican President Ronald Reagan and Conservative British Prime Minister Margaret Thatcher.
Friedman also had an apartment in Russian Hill, San Francisco, where he lived from 1977 until his death. === Religious views === According to a 2007 article in Commentary magazine, his "parents were moderately observant Jews, but Friedman, after an intense burst of childhood piety, rejected religion altogether." He described himself as an agnostic.
In a debate between Tsang and his rival Alan Leong before the 2007 Hong Kong Chief Executive election, Leong introduced the topic and jokingly accused Tsang of angering Friedman to death (Friedman had died only a year prior). === Chile === During 1975, two years after the military coup that brought military dictator President Augusto Pinochet to power and ended the government of Salvador Allende, the economy of Chile experienced a severe crisis.
A Friedman Prize was given to the late British economist Peter Bauer in 2002, Peruvian economist Hernando de Soto in 2004, Mart Laar, former Estonian Prime Minister in 2006 and a young Venezuelan student Yon Goicoechea in 2008.
He was survived by his wife, Rose Friedman (who would die on August 18, 2009) and their two children, David D.
A 2011 survey of economists commissioned by the EJW ranked Friedman as the second-most popular economist of the 20th century, following only by John Maynard Keynes.
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