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Friday, November 17, 2006

The Passing of A Giant - Milton Friedman

Milton Friedman was many things and GENIUS is among them.

The "father" of Monetarism for which he won a Nobel Prize in 1976.

Friedman studied, and later taught, at the University of Chicago was a Keynesian at first but then took a different view. According to Friedman, inflation was a monetary phenomenon i.e. when money supply outpaced output = inflation.

One of his best known works is the Theory of the Consumption Function, which says that people's spending habits are shaped by their expectations of future ("permanent") income rather than their current income.

He was very influential in the Reagan Administration since he was a member of President Reagan's Economic Policy Advisory Board. Ben Benarke (current Federl Reserve Chairman) is widely thought to be a Monetarist.

Milton Friedman's colleagues & students (The Chicago Boys) helped Chile turnaround its economy.

Milton, we shall miss you!

10 comments:

Kudrinketh said...

One of my economics professors was Friedman's student at Chicago.he'd tell us anecdotes about friedman, and i must say i bought into the monetary control theory.

just take a look at zimbabwe for proof that inflation is tied to monetary supply.my feeling is that until mugabe stops printing money,zimbabwe will continue to have runaway inflation.

closer to home,we clearly remember moi's pre election antics of printing excess money and how inflation went up, i know kibaki(an economist) is too smart to pull such a stupid stunt.

kenyanentrepreneur said...
This comment has been removed by the author.
kenyanentrepreneur said...

don't forget about idi amin - when his finance minister told him that the country was running out of money, he remarked startled - "Ala! si you should just print more money"

CT:
you have not been visiting my blog lately. I am very disapointed in you. I have a very interesting article on amos wako's networth. it will make you very upset.

Kenyanentrepreneur.com

coldtusker said...

kudri - I think there are restrictions in the law against printing money but when has the law stopped politicians?

ke - Upset? I read your blog on a regular basis.

I didn't see a story on the poodle.

pesa tu said...

I cant believe it, he is gone.I read an Anecdote about how he charged CBOT to do a paper that eventually jump-started the Forex Derivatives biz.
I apply that lesson in my life.

coldtusker said...

ke - Checked again again but no article on AW aka the poodle...

Kudrinketh said...

public TV today showed a rerun of an interview that friedman did last yr.amazing how his mind was still razor sharp at 93! if i live to be that old,i hope i keep my brain cells coz the mind is a beautiful thing.

Benin "Mwangi" said...

Your Posts are very insightful. I want to say something that furthers the discussion on Milton Friedman...
but I confess...you know more about Friedman than I do and my economics professors were always
"Friedman this Friedman that". I was always more into Keynes.

I will now have to dust off some of my old textbooks to get a closer look at Milton Friedman-Thanks. Hey thanks for commenting on my blog too!

coldtusker said...

Benin - Economists can do little if the will is not there. In Africa's case even a Nobel Prize winner's theory achieves little UNLESS the incompetents are replaced.

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