Milton Friedman
Milton Friedman was the 20th century’s most prominent advocate of free markets. This American economist and statistician served as a professor at the University of Chicago, where he developed numerous free-market theories that opposed the views of traditional Keynesian economists. Although much of his trailblazing work was done on price theory, Friedman is popularly recognized for monetarism. His books have had a substantial influence on the economics profession.
Milton Friedman Professional Experience / Academic History
Professional Experience
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Professor, Economic Theory
Academic History
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PhD
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Master of Arts
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BA, Mathematics and Economics
- Milton Friedman demonstrated that monetary policy operates with a lag of 12–18 months.
- He realized that there was a problem with floating exchange rates (not based on gold): There was nothing to govern Fiscal Policy
- Supported a constitutional amendment that would have required a balanced budget unless there was a 60% vote
- Hope was that deficit would only occur during a national emergency
- This Amendment passed the house & senate with majority, but did not receive a 2/3 required vote
- It was also supported by President Ronald Reagan
- In retrospect its failure was a pivotal decision for American Financial Policy