Milton Friedman completed graduate studies in economics at
the University of Chicago and at Columbia University, where he
received his Ph.D. in 1946. Most of Friedman’s academic career
was spent as a professor at the University of Chicago, and after
retiring in 1977 he was a senior research fellow at the Hoover
Institution at Stanford University. Friedman is best known as
one of the leading proponents of Monetarism and for his belief
in the power of free markets. His work greatly influenced
modern macroeconomics.
Friedman made his first significant mark on the profession with
the publication of The Theory of the Consumption Function in
- There he developed the permanent income hypothesis
and argued that consumption depends on long-run average
income rather than current disposable income, as it does in
Keynesian analysis. This was an early example of a