Questions tagged [friedman]

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Why was Friedman so wrong about inflation?

In a famous 1977 lecture, Milton Friedman claims that inflation depends purely on the monetary policy and he proves it with a convincing chart (youtube video here) I have reproduced his chart using ...
elemolotiv's user avatar
1 vote
0 answers
35 views

Difference between IS curve viewed by Keynes and by Friedman

In my economics lectures, we are going through Keynes vs Friedman. As far as I got we have a downward sloping IS curve in the IS-LM model. We get this curve from the Keynesian cross when the rate of ...
Mike's user avatar
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3 votes
1 answer
222 views

Why Certainity Eqivalence in PIH only holds for quadratic utilities

In my current macro economics course, it has been stated that there is certainty equivalence in the random walk permanent income hypothesis ("which implies individuals act as if future consumption was ...
Jhonny's user avatar
  • 317
1 vote
0 answers
276 views

Friedman rule vs Friedman's k-percent rule

Friedman has stated in his "k-precent rule" that the money supply should increase by a fixed percentage each year. On the other hand, the "Friedman rule" states that the nominal interest rate should ...
user56834's user avatar
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Why in some models the Friedman rule is not optimal?

I want to know why in some models the Friedman rule stops being optimal. For example, in some models like MIU or CIA, where usually you don't have leisure, the Friedman rule is optimal. But in other ...
neto333's user avatar
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1 vote
1 answer
1k views

What was Milton Friedman's opinion of Supply-side economics?

I realize Friedman was a part of the Reagan Administration, so even if he disapproved of supply-side, he may have moderated his remarks, but what kind of things did he say about it, and what can be ...
Richard Peterson's user avatar
9 votes
3 answers
757 views

Inflation, cause or result of monetary emission?

The argentine economist Fernanda Vallejos, while trying to protect the government because of the inflation, the following: Inflation is not the result but the cause of monetary emission. As there'...
Diego Jancic's user avatar
-4 votes
1 answer
408 views

Friedman k% applied to cryptocurrency

Follow on to this question: Would a cryptocurrency with a base that expanded at a fix rate face fewer difficulties than one with a stagnant base? Edit: I'm referring specifically to the issues raised ...
Jason Nichols's user avatar