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Who was ‘Milton Friedman’ Milton Friedman was an American economist and statistician best known for his strong belief in free-market capitalism. BREAKING DOWN ‘Milton Friedman’ Milton Friedman was born on July 31, 1912, in New York, and died on Nov. Friedman grew up on the East Coast and attended Rutgers University, studying mathematics and economics. He graduated from college in 1932 and went on to earn a Ph.
Friedman’s first big breakthrough in the field of economics was his Theory of the Consumption Function in 1957. This theory championed the idea that a person’s consumption and savings decisions are more greatly impacted by permanent changes to income rather than changes to income that are perceived as ephemeral. Friedman’s seminal contribution to economics came through his analysis of prevailing macroeconomic theories. During his time as a professor, macroeconomics was dominated by Keynesian Economic Theory. Friedman opposed these macroeconomic Keynesian views with his own economic theory of free-market monetarism. Through this theory, Friedman expressed the importance of monetary policy and pointed out that changes in the money supply have real short-term and long-term effects. Specifically, the money supply affects price levels.