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Word: friedmanic (lookup in dictionary) (lookup stats)
Dates: during 1960-1969
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Usage:

...years, the maverick views of Milton Friedman, the towering iconoclast of U.S. economics, attracted just about as much ridicule as respect. A monetary theorist, the bald and somewhat cherubic University of Chicago professor maintains that the U.S. and many other major nations mismanage their economies. They do so, he argues, by manipulating taxes, federal spending and money supply-techniques that were formulated by Britain's John Maynard Keynes. "Keynesian economics doesn't work," says Friedman. "But nothing is harder for men than to face facts that threaten to undermine strongly held beliefs...

Author: /time Magazine | Title: Business: THE NEW ATTACK ON KEYNESIAN ECONOMICS | 1/10/1969 | See Source »

Those beliefs have grown stronger in the past eight years, while the U.S. economy has expanded under the vigorous application of neo-Keynesian principles. Today, when the economy is strained by inflation, Friedman's challenge commands serious attention and growing support, and is a topic of heated debate among economists, bankers and Government officials. The controversy has lifted Friedman to eminence as the leader of the so-called "Chicago school" of economic thought. Increasingly influential abroad as well as at home, he is one of the principal economic advisers to Richard Nixon. Says Paul McCracken, the incoming chairman...

Author: /time Magazine | Title: Business: THE NEW ATTACK ON KEYNESIAN ECONOMICS | 1/10/1969 | See Source »

Erratic Swings. In Friedman's view, the Government has repeatedly misused its two chief weapons against recessions and inflation: fiscal and monetary policies. He contends that the Keynesians rely too much on fiscal regulators-that is, on changes in taxes and federal spending. Consequently, they underrate the influence of monetary policy, notably changes in the quantity of money in circulation. Of all the economic tools at the Government's disposal, insists Friedman, the most important and fastest-acting by far is regulation of the money supply. Over the short run, the money supply indirectly controls the growth rate...

Author: /time Magazine | Title: Business: THE NEW ATTACK ON KEYNESIAN ECONOMICS | 1/10/1969 | See Source »

...process, it makes adjustments for peak periods of demand, such as the Christmas shopping season, or times when the Treasury must borrow heavily to finance budget deficits. In addition, the Federal Reserve tries to use its monetary powers to moderate the ups and downs of U.S. business. But Friedman says that the board repeatedly errs in the rate at which it expands or constricts the money supply. As a result, it aggravates the swings of an economy that it is supposed to steady...

Author: /time Magazine | Title: Business: THE NEW ATTACK ON KEYNESIAN ECONOMICS | 1/10/1969 | See Source »

...rate of 9½% a year, and the war-swollen economy began to suffer from inflation. When the Reserve Board overreacted, it slammed on the brakes too hard. Until January 1967, money supply was allowed to grow at a yearly rate of only 3.8%. The result, says Friedman, was the first-quarter slowdown that analysts dubbed the mini-recession of 1967. Since January 1967, the money supply has increased at a 9.9% annual rate, and Friedman blames today's inflation primarily on that fact. Last year he correctly predicted that, in the absence of restraint on money supply...

Author: /time Magazine | Title: Business: THE NEW ATTACK ON KEYNESIAN ECONOMICS | 1/10/1969 | See Source »

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