Milton Friedman (1912-2006), a Nobel Prize winning economist, specialized in consumption theory, monetary policy, and stabilization policy. Early in his career he was a Keynesian, but he never advocated wage and price controls. In fact, he has been called the first counterrevolutionary against Keynesianism. He endorsed a macroeconomic policy which became known as monetarism. He believed in a natural rate of unemployment which governments could modulate at the risk of inflation. He objected to a good deal of government regulation, and favored free market economics. In his seminal work, “Capitalism and Freedom,” he called for floating exchange rates, a voluntary military, negative income tax, education vouchers, and abolition of medical licenses!
This cursory examination of “The Fab Five,” a select group of economic theorists, can provide the financial professional with an initial template upon which to expand perspectives in terms of how money, markets, economies, and production actually work. The FP’s willingness to study economic theory, money behavior, and wall street psychology will only enhance their financial planning and decision making skills in this most challenging business. And help them make sense out of the money-mad world in which they live and work!
Milton Friedman (1912-2006), a Nobel Prize winning economist, specialized in consumption theory, monetary policy, and stabilization policy. Early in his career he was a Keynesian, but he never advocated wage and price controls. In fact, he has been called the first counterrevolutionary against Keynesianism. He endorsed a macroeconomic policy which became known as monetarism. He believed in a natural rate of unemployment which governments could modulate at the risk of inflation. He objected to a good deal of government regulation, and favored free market economics. In his seminal work, “Capitalism and Freedom,” he called for floating exchange rates, a voluntary military, negative income tax, education vouchers, and abolition of medical licenses!This cursory examination of “The Fab Five,” a select group of economic theorists, can provide the financial professional with an initial template upon which to expand perspectives in terms of how money, markets, economies, and production actually work. The FP’s willingness to study economic theory, money behavior, and wall street psychology will only enhance their financial planning and decision making skills in this most challenging business. And help them make sense out of the money-mad world in which they live and work!
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