Milton Friedman in his long and distinguished career made significant contribution, in the economic

Milton Friedman and John Keynes are two world renowned economist, with many similar and contrasting views that have helped set the foundation of our economy. Friedman 's ideology on subjects such as the Monetary Policy, Gold Standard, and the Theory of the consumption function are what made him a extremely impactful economist. Keynes has made his impact on the modern day world as well in many aspects. Both of these economists have helped pave the way to a better, more efficient economy.

John Maynard Keynes fostered a school of thought that came to be known after him,

John Maynard Keynes was an economist instrumental in the theories that aided in the construction of the New Deal during the great depression. He believed that it was appropriate for government to use tax and spend policies in order to stimulate the government. He felt that by using this fiscal policy it would keep the country out of a recession or depression. Beings it is an election year, and the economy affects everyone in the country, I wanted to look into the Keynes theories and discover if it is necessarily a good economic choice.

John Maynard Keynes was born in 5th of June 1883 and died at the age of 62 on the 21st of April 1946. His work in economics and his ideas fundamentally changed the practice and theory of modern macroeconomics as well as the economic policies of governments. Keynes is very well known for his exceptional work on the implications and causes of the business cycles and is also regarded as the founder of modern macroeconomics. The school of thought also known as ‘Keynesian economics’ as well as the various offshoots have his ideas as foundation.

Since the early days of the United States, the Founding Fathers and other brilliant minds sought ways to understand and make sense of the inner workings of society and the economic market. Out of the many thinkers and developers of that time period, perhaps none made so great an impact on American society as the Scottish contemporary philosopher and political economist, Adam Smith—who is most known for his influential work, An Inquiry into the Nature and Causes of the Wealth of Nations, By the early nineteenth century, other streams of economic theory emerged from various individuals who were also influenced by the ideas of Smith. Some of these individuals included David Ricardo, Karl Marx and later John Maynard Keynes and Milton Friedman—each of whom contributed their own ideas on economic activity. However, it was Smith’s ideas on capitalism and his laissez-faire approach to free markets that have transcended other economic theories and continue to impact American economic thought to this day.

Many of his writings contributed to the Neoclassical Marginalist Revolution in the early 1900’s. This was the great shift from classical to neoclassical economics. He was also a big advocate of the League of Nations, because of his promotion of healthy living and world peace, and this in turn helped to eventually create the United Nations. His theories, no matter how controversial, helped shape economics into what it is

Milton Friedman’s ideas where thought to be radical, but he was the most authoritative figure in the economics field in the 20th century, (Placeholder2) and was known most for his thoughts on free enterprise, classical liberalism and limited government. (Placeholder3) His views shaped modern capitalism. (Placeholder2) He was against government intervention and favored free markets (Placeholder6).

Milton Friedman is the author of many books and two public television series that he did with his wife Rose: Free to Choose(1980) and Tyranny of the Status Quo(1984). His most important books include Free to Choose and Tyranny of the Status Quo( both of which compliment the TV series), Capitalism and Freedom(1962 with Rose D. Friedman); and Bright Promises, Dismal Performance (1983), which consists mostly of reprints of tri-weekly columns that he wrote for Newsweek from 1966 to 1983. Also, A Theory of the Consumption Function(1957) and A Monetary History of the U.S.(1963 with A.J. Schwartz).

Such a process can be very time consuming and imprecise, without, of course, having a market currency price to begin with. The exchange-rate system is an important topic in international economic policy. Policymakers and journalists often seem to treat the choice of exchange-rate system as one of the most important economic policy choices that a national government makes, on a par with free international trade. Under most circumstances and for most countries, a system of freely floating exchange rates is likely to be a better choice than attempting to peg the exchange rate.

developed his theory based on the Adam Smith’s theory. Keynes did not entirely disagree with

Other important classical economists include David Ricardo who introduced and developed the concepts of comparative advantage and the

He was considered one of the first mathematical economists and critiqued previous thinkers for not attempting to analyze the laws they claimed existed, yet just establishing the concept and believing it works based on continuous trial and

In Friedman’s monetarist construct of money has two side that is highly active. One of the side is money is being the cause of all failures and asymmetries in the economy (in the short term). The other side is neutral which money is influencing only the price level (in the long term). The nominal quantity of money is determined by its supply. On the other hand, the real volume of the money stock is expressed in the amount of goods and services that can be acquired for a given nominal amount of money and is conditioned by the demand for money, which is directly related to the price level.

A fixed exchange rate regime will offer an economy greater stability in international prices and therefore encourage trade. Additionally, for developing countries a fixed rate will assist in promoting institutional discipline as the country will adopt restrictive monetary and fiscal policies that foster an anti-inflationary environment. A significant weakness of a fixed rate is that it is subject to destabilizing speculative attacks which could lead to financial meltdowns and devastating economic contractions. A floating exchange rate regime allows central banks to combat macroeconomic factors such as unemployment, inflation, and interest rates without having to worry about the effect on exchange rates. However, developing countries whose economies depend on trade will be reluctant to allow their exchange rates to fluctuate freely.

Monotonously, economist of the International monetary system focused their mind on the outline of either fixed or a flexible exchange rate system. At the end of the Bretton woods system, many countries are adopted managed floating exchange rate system, in particularly a number of emerging countries try to preserve their currencies from increased volatility in foreign exchange markets triggered by monetary alleviating measures from highly developed countries.