Milton Friedman (1912 - 2006) was an American economist and statistician who became one of the most influential thinkers of the twentieth century. [1] A leader of the Chicago school of economics, he championed free markets, limited government, and monetarism, the theory that the money supply is the primary driver of inflation. [3] He received the 1976 Nobel Memorial Prize in Economic Sciences for his work on consumption analysis, monetary history, and stabilization policy. [2]
Early life and education
Friedman was born on 31 July 1912 in Brooklyn, New York, the child of immigrants from what is now Ukraine. [1] He earned his bachelor's degree at Rutgers University in 1932, where his interest turned from mathematics toward economics, and completed a master's degree at the University of Chicago the following year. [3] In 1946 he received a doctorate from Columbia University, having spent the intervening years working as a statistician on government and research projects, including wartime tax policy and the analysis of professional incomes. [1]
Academic career and monetarism
Friedman joined the faculty of the University of Chicago in 1946 and remained there for three decades, helping to shape what became known as the Chicago school of economics. [3] His empirical work reshaped several fields: A Theory of the Consumption Function (1957) introduced the permanent-income hypothesis, arguing that spending depends on expected long-run income rather than current earnings. [1] With Anna Schwartz he wrote A Monetary History of the United States, 1867-1960 (1963), which contended that mismanagement of the money supply by the Federal Reserve had deepened the Great Depression. [2] These studies underpinned monetarism, his argument that steady control of the money supply, rather than active fiscal intervention, was the key to economic stability. [3]
Public influence
Friedman became a prominent public advocate for individual liberty and market solutions. His book Capitalism and Freedom (1962) and the later television series and book Free to Choose (1980) brought his ideas to a wide audience. [1] He promoted policies such as a volunteer army, school vouchers, floating exchange rates, and a negative income tax, and served as an informal adviser to political leaders. [3] He wrote a regular column for Newsweek and was widely known for his debating skill.
Recognition and legacy
In 1976 Friedman was awarded the Nobel Memorial Prize in Economic Sciences. [2] He also received the John Bates Clark Medal, the National Medal of Science, and the Presidential Medal of Freedom. [1] After retiring from Chicago he moved to the Hoover Institution at Stanford University. His emphasis on monetary policy and market forces reshaped macroeconomic thinking and influenced central banks and governments well beyond the United States. [3]
