According to Milton Friedman, everyone agrees that the main objective of sound economic policies is maximum levels of employment, constant and steady prices, and swift expansion and development. However, what is usually debatable about these objectives is that not everyone views these objectives as well-matched and the conditions under which they can and must be replaced with each other.
What most economists agree upon is that several different means can be used to achieve these objectives. During the great debate in macroeconomics during the 1960s initiated by Freidman & Schwartz which took place between the Keynesians and the Monetarists, most economists were of the opinion that the arguments made by Freidman and associates produced better evidence.
Milton Friedman
Professor Friedman founded and was the chief advocate of the Chicago School of Economists monetarism. Friedman contended that economics should not be adjudicated according to normal standards for it to be appreciated or valued as impartial for raising the minimum wage or for other economic activities.
Prescribed standards usually absorb inherent predictions regarding the costs of various courses of action. Professor Friedman further contends that a functional economic theory must not be adjudicated solely by its linguistic redundancies no matter how essential that proves at providing a reliable system for categorizing fundamentals of the theory.
Concepts
According to Friedman, a concept should be judged by its straightforwardness to foresee or calculate an interchangeable theory with a minimum amount of information and it should also possess within the range of its forecast the capability to produce supplementary study themes.
This is because really essential theories need to be investigated for assumptions that could be incorrect and do not, in essence, describe reality. To maximize their profits, companies work hard to balance the marginal revenue against marginal expenses, but such decisions are not visible in any calculations by businessmen.
However, when firms are seen to exert extra efforts to maximize their profits it can be considered to be the applicable analysis of the related supposition. The theories of Milton Freidman hold importance because of his impressive and wide-ranging contributions to monetary theories and policies. His productive writings were quite helpful for monetary rules and techniques, the assessment theory, the expenditure, and the enduring proceeds premise.
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