Milton Friedman Vs. Monetarism - 1580 Words

Milton Friedman and Monetarism Tomas M. Kuhn Robert Morris University Milton Friedman and Monetarism In politics, our nation is divided into many different parties. Each party has their own stance on how things ought to be and what changes need to be made in order to have society function they way they’d like. Macroeconomics also can be viewed as divided. Instead of being divided into parties, economists are separated by different schools of thought. There’s many schools of thought because macroeconomics is such a complex matter. When there’s problems in the economy answers can be found in a plethora of places, because there’s so many moving parts. These moving parts of the economy are what economists use to make sense of everything. When people view some parts more important than others or find different solutions, different schools of thought become apparent. One of these schools of thought come from the writings of economists Anna Schwartz, Karl Brunner, Allan Meltzer, and most notably Milton Friedman. The school of thought became known as Monetarism, which focused on the macroeconomic effect of a nation’s money supply and its central banking institution (Mccallum). We will be focusing on Friedman and the contributions he made to monetarism, which includes his quantity theory of money. Milton Friedman was the Professor of Economics at the University of Chicago for thirty years up until 1976. He is credited for the formulation of the Monetarism school of