Nobel Memorial Prize in Economics (1976)
Presidential Medal of Freedom (1988)
Milton Friedman was a well-known American economist and professor of statistics at the University of Chicago. He received the Nobel Memorial Prize in Economic Sciences. He has made his mark among other economists and scholars and is best known for his theoretical and empirical research work in consumption analysis, monetary history and theory for demonstrating the complexity of stabilization policy. He acted as an economic advisor to the U.S. President Ronald Reagan. His political philosophy that propagated the virtues of a free market economic system with little intervention by government is practiced by many governments. His works greatly influenced the research agenda. He also served as the leader of the Chicago school of economics under the University of Chicago. Milton Friedman's works include monographs, books, scholarly articles, papers, magazine columns, television programs, videos, and lectures. He wrote on a variety of topics on microeconomics, macroeconomics, economic history, and public policy issues. Originally a Keynesian supporter of the New Deal, he insisted on the government intervention in the economy. He then founded The Friedman Foundation for Educational Choice. The Economist called him "the most influential economist of the second half of the 20th century…possibly of all of it". Friedman died at the age of 94 on 16th November 2006.
Education and Early Life
Public Service Career
In 1935, he started his work on the National Resources Committee, which was carried on a large consumer budget survey. The ideas of this project came from his Theory of the Consumption Function. In 1937, Friedman began employment with the National Bureau of Economic Research to assist Simon Kuznets in his work on professional income. This work resulted in their co-authored publication Incomes from Independent Professional Practice, which introduced the concepts of permanent and transitory income and gave light on the major component of the Permanent Income Hypothesis. Friedman worked on it more elaborately in the 1950s.
In 1940, Friedman served as an assistant professor of Economics at the University of Wisconsin–Madison. There he faced antisemitism in the Department of Economics and decided to return to government service. From 1941 to 1943, Friedman worked on wartime tax policy for the Federal Government. He served as an advisory head to the senior officials of the United States Department of Treasury. In 1942, he advocated the Keynesian policy of taxation, and helped in inventing the payroll withholding tax system.
He then accepted an offer to teach economic theory in 1946 at the University of Chicago. It was a position opened by departure of his former professor Jacob Viner to Princeton University. Friedman served the University of Chicago for the next 30 years and helped in building an intellectual community that has been the starting point for many budding Nobel Prize winners. It is collectively known as the Chicago School of Economics.
Friedman later joined the National Bureau of Economic Research. He then initiated the "Workshop in Money and Banking" (the "Chicago Workshop") and promoted the revival of monetary studies. In the latter half of the 1940s, Friedman collaborated with Anna Schwartz and economic historian at the Bureau. In 1963, he co-authored a book with Schwartz, A Monetary History of the United States, 1867–1960.
Between the period 1954 to 1955, Friedman spent the academic year as a Fulbright Visiting Fellow at Gonville and Caius College, Cambridge. Later his weekly columns for Newsweek magazine (1966–84) were well acclaimed and were successful in influencing the political and business class.
In 1976 Friedman was honored with the Nobel Memorial Prize in Economics "for his achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy". He retired from the University of Chicago in 1977, at age 65, serving as a teacher for 30 years. He and his wife moved to San Francisco. He was then affiliated with the Hoover Institution at Stanford University in 1977. Friedman was part of the television program on the economic and social philosophy, Free to Choose Network for the next three years. In 1980, the ten-part series was broadcasted by the Public Broadcasting Service (PBS). Free to Choose also went on to become a bestseller in the non-fiction category in 1980. It was then translated into 14 foreign languages. Friedman also served as the unofficial adviser to Ronald Reagan in 1980 and served in the President's Economic Policy Advisory Board during Reagan’s Administration. In 1988, he was honored with the National Medal of Science along with the Presidential Medal of Freedom. In the 1980s and 1990s, Friedman frequently appeared on television and wrote editorials. He also traveled extensively to Eastern Europe and China.
Contributions in the Field of Economics
Friedman rejected the use of fiscal policy as a tool of demand management. He wrote extensively on the Great Depression and termed the Great Contraction. He also gained prominence for his work on the consumption function, the permanent income hypothesis (1957). His other contributions include his critique of the Phillips curve and the concept of the natural rate of unemployment (1968). He wrote the essay "The Methodology of Positive Economics" in 1953.
Contributions in the Field of Statistics
Public Policy Positions
MILTON FRIEDMAN TIMELINE
He was born on 31st July in Brooklyn, New York
Assistant Professor of Economics at the University of Wisconsin–Madison.
He wrote the essay "The Methodology of Positive Economics".
Friedman co-authored A Monetary History of the United States
Friedman founded The Foundation for Educational Choice
Friedman died at the age of 94 years in San Francisco on November 16
Pictures of Milton Friedman