RIP Milton Friedman (1 Viewer)

[gnrlies]

My favourite economist died aged 94

All you younguns unfortunately dont get to hear too much from him because the HSC course is a particularly leftist course based on out of date keynesian principles.

I would encourage those who have an interest in economics to check out what Milton Friedman was all about

 

[Sparcod]

Of course, most of us won't know who he is. I know that he was a Nobel Prize winner.

 

[gnrlies]

yes, which he won not for his theories on monetarism, but for his theory of consumption.

 

[Sparcod]

Yeh why is he your favourite economist?

 

[gnrlies]

For a number of reasons:

- He challenged the keynesian notion of governments spending more in times of recession and less in more prosperous times.

- He heightened the use of monetary policy as the main instrument for economic management

- He paved the way for inflation targeting by demonstrating the role of inflationary expectations when looking at inflation. Such a process has allowed us to go back to low inflation, and full employment (such is demonstrated by the australian economy). (although it must be noted that his "monetary targeting" wasn't perfect, but I think it was the pivotal change required in order to achieve effective monetary policy)

- He was an advocate for market liberalisation. There is not a single microeconomic reform in existance that does not owe some credit to Milton Friedman.

- He was generally a champion of individual freedom.

- He was a very influential character to two of the most influential leaders in recent times: Ronald Reagan and Margaret Thatcher.

- I'm not exaggerating, but he's probably been more influential on our every day lives than any other person living in the last 40 years. Economically speaking we would be much further behind - or certainly someone would have stepped up to his place in order to put us where we are today.