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The Friedman rule is a monetary policy rule proposed by Milton Friedman. [1] Friedman advocated monetary policy that would result in the nominal interest rate being at or very near zero. His rationale was that the opportunity cost of holding money faced by private agents should equal the social cost of creating additional fiat money .
According to Milton Friedman "The stock of money [should be] increased at a fixed rate year-in and year-out without any variation in the rate of increase to meet cyclical needs." (Friedman 1960) Giving governments any flexibility in setting money growth will lead to inflation according to Friedman.
In March 2022, just before U.S. inflation reached a decades-high peak, Musk advised: “It is generally better to own physical things like a home or stock in companies you think make good products ...
Milton Friedman's research changed how economists interpreted the consumption function, and his work pushed the idea that current income was not the only factor affecting people's adjustment household consumption expenditures. [67] Instead, expected income levels also affected how households would change their consumption expenditures.
Friedman’s study of inflation in the U.S. going back nearly 100 years, and his later study of inflation in the U.K., purported to show a close correlation between monetary growth and prices over ...
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A Program for Monetary Stability is a book by the US economist Milton Friedman. It has been published by Fordham University Press in 1960 with consecutive re-prints appearing in 1961, 1963, 1965, 1969, 1970, 1975, and 1980. [1]
Milton Friedman made a restatement of the theory in 1956 and made it into a cornerstone of monetarist thinking. The theory is often stated in terms of the equation M V = P Y, where M is the money supply, V is the velocity of money, and P Y is the nominal value of output or nominal GDP (P itself being a price index and Y the amount of