What effect does a policy that guarantees equality of outcome have of freedom, based on the article Created Equal by Friedman, Milton?
For unlimited access to Homework Help, a Homework+ subscription is required.
Ivan Pongracic explains how the Fed may have been responsible for prolonging the Great Depression. Read the article on this website http://www.fee.org/the_freeman/detail/the-great-depression-according-to-milton-friedman. Explain Milton Friedman's theory about the cause of the Great Depression. How does this impact your understanding of what policy solution would have been best to get the economy going again?
Milton Friedman argued that interest sensitivity of money demand is low but positive. What does that imply for evolution over time in nominal and real interest rate if monetary policy follows the constant money growth rule? Is there any problem to this?
Economist Abba Lerner (1903-1982) likened the economy to an automobile traveling down a road that had traffic barriers on each side. Economist Milton Friedman (1912-2006) modified Lerner's analogy, giving it a different meaning. He said that the economic vehicle does not need a skillful driver who is continuously turning the wheel to adjust to the unexpected irregularities of the route. Which side do you tend to lean and why?