Friedman vs Keynes

Friedman vs. Keynes I. debut . II. Milton Friedman A. Historical priming B. View of saving a. Early Views b. Later Views C. squ are up on Policy Makers a. Richard Nixon b. Ronald Reagan III. prat Maynard Keynes A. Historical Background B. View of Economy a. Trade b. Un art C. Influence on Policy Makers a. Prime take care David Lloyd George b. Frank D. Roosevelt IV. Conclusion Friedman vs. Keynes The discipline of macro political prudence deals with the performance, structure, and behaviour of a national frugality as a total.Macroeconomic experts seek to understand the de stipulationinants of heap up trends in an economy with particular counseling on national income, un avocation, inflation, investment, and international trade. Milton Friedman and tin can Maynard Keynes, who was two(prenominal)(prenominal) great economists, embraced the different challenges of the institution by imposing their own philosophies. Although both Friedman and Keynes have some similarities, strong disagreements virtually the monetary arena set them apart. These cardinal gentlemen traveled different paths of frugals their whole life to establish ground rules for the administration activity to follow.The first son of a running(a) class Jewish family, Milton Friedman was natural in New York City in the primordial 1900s. Milton graduated high school in advance his 16th birthday and received a scholarship to Rutgers University where he began a distinctiveness in mathematics. Miltons intimacy in economics was regularized by two economics professors during his undergraduate studies during the time of the Great slump (Friedman, 2005). He was convinced that the study of economics could help solve ongoing economic difficulties. Milton graduated with a double study of economics and mathematics.Milton has been credited as world the most influential economist of the game half on the twentieth century. though originally a follower of the theories of John Maynard Key nes, Friedman afterward revoked the predilections of central control later on witnessing the effects and moved towards advocating free markets. Friedmans views of monetary policy, taxation, privatization, deregulation influenced the pre viewntial term of Ronald Reagan in the United States during the 1980s and Margaret Thatcher in Britain. Friedman served on the committee of economic advisors for professorship Richard Nixon and was at times nsuccessful at convert Nixon to accept his advice (Stein, 2006). In addition to the influence on world leaders, Friedmans stupor on economy is in like manner unadorned in his contribution to the payroll deny tax system. This system was put in place to counteract tax shunning and tax avoidance either by domestic or international taxpayers. Milton Friedman also advocated for a voluntary military and against a draft. Friedmans approach to economy and governing body developed into a laissez-faire view. He defended capitalism and criticized t he ideas of the New Deal. John Maynard Keynes was born in Cambridge, England in 1883.Johns grow was a registrar at the University of Cambridge and an economist dapple Johns find was one of the first female graduates of the University of Cambridge, and later the mayor of Cambridge. John Maynard Keynes began his studies in mathematics and the classics at Kings College of Cambridge (Reich, 1999). Keynes was powerfully influenced by Alfred Marshall to change his schoolman interests to politics and economics. Upon completion of his undergraduate studies Keynes became a civil servant in India for a spell and later returned to Cambridge to t from each one economics.As creative activity War I ensued Keynes returned to government employment and studied relations with war allies. Keynes acted as an economic advisor to Prime pastor David Lloyd George (Reich, 1999). Keynes is best known for his work and theories of protract unemployment. In his 1936 publication Keyness popular Theory of Employment, Interest and Money Keynes explores the emulous capitalist economy that could move the economy toward a advance of full employment based on a government sponsored policy.One could argue that geography, upbringing, and the social era that each economist was at during his professional eyeshade as contributing factors to their differences. Friedmans ideals bulge out to be rooted in rules while Keynes believed that policy should be carried out by superior elite. While Friedman believed that the interest is a real phenomenon is fit(p) by the add up of and demand for loaned funds, Keynes would argue against. Keynes would pose that the interest rate is a monetary phenomenon and is determined by the supply of demand for money.There are obvious differences between Friedman and Keynes, yet in that location are some underlying similarities in their work. Both of these economists were great advocates of their ideas both saw the great depression as a crisis due to lack of dem and both wrote in favor of floating transfigure rates and both were on the side of freedom in the great ideological struggle of the 20th century. In addition, both economists believed that capitalism should be preserved and that there were financial policies that could support a bonny rate of growth (Stein, 2006).Based on the seek that I have conducted I pitch to lean towards agreeing with Friedman, though I do not reject all of the concepts presented by Keynes. Friedmans approach to an unbalanced economy is realistic to what is seen in todays economy. In following Friedmans suit, I suspect that the aggregate economic state of the United States today, specifically increasing flatulency prices and high unemployment, as a consequent of significant world events. James/ECO-202 case Friedman, M. (2005).Milton Friedman Autobiography The Sveriges Riksbank Prize in sparing Sciences in Memory of Alfred Nobel 1976. Retrieved October 20, 2007, from http//nobelprize. org/nobel_prizes/ economics/laureates/1976/friedman-autobio. hypertext markup language Reich, R. B. (1999, March 29). John Maynard Keynes His radical idea that governments should spend money they dont have may have deliver capitalism Electronic Version. Time. Stein, B. (2006, November 27). Milton Friedman, freedom fighter. Retrieved October 20, 2007, from http//www. time. com/time