Milton Friedman Economic Theory. This modern day economist opposed keynesian views. Another major theory presented by milton friedman is the permanent income hypothesis first introduced in his the 1957 book theory of the consumption function it argued against the keynesian view that individuals and households adjust their expenditures to reflect their current income.
Milton friedman popularized the theory of monetarism in his 1967 address to the american economic association. The economic theories of milton friedman have as much merit today as they did in the 1970 s. In the 1950s macroeconomics was dominated by scholars who adhered to theories promoted by john maynard keynes.
Prices then fall as people would have less money to spend.
Milton friedman s economic theories became what is known as monetarism which built on and overturned. Milton friedman is the father of monetarism. Yet many others saw in it a timely. July 31 1912 november 16 2006 was an american economist 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.
