Friedman and the modern quantity theory

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Friedman’s Modern Quantity Theory demonstrates that there is an extraordinary empirical stability for such quantities as the velocity of money, while recognizing that stability is not constant. Thevelocity and the demand of money are two substantive parts of the formulation of Friedman, these are key to understanding the MQT, the idea that the velocity and demand are stable and thereforepredictable. But they are not in the sense of the old classical theory, to be completely stable and unchanging, in accordance with empirical studies of Friedman has been remarkably stable and regular, asthey vary (the velocity and the demand for money) very little, except in periods of crisis and hyperinflation, another key variable to maintain the previous assumptions is that tastes and income(permanent income) are stable.

Milton Friedman, who was awarded the 1976 Nobel Prize, wrote, among others, the book "Capitalism and Freedom", originally published in 1962, trained generations of economistsfrom many countries and influenced the formulation of government economic policies of Margaret Thatcher (1979-1990), the United Kingdom and Ronald Reagan (1981-1989), in the United States. Hisdoctrine which later became known as the "Chicago School".
Moreover, it was in this book where he largely discusses the differences and advantages of rules over authority. Friedman proposed almost acomplete economic freedom, it would be a means to political freedom where the mere capitalist competition would promote political freedom and respond to the desires of the market (and society) andvoluntary cooperation of individuals in competition, promote coordination of the activities of millions of people.
Thus, the only remaining problem would be ethical inquiry about what an individual with hisfreedom. Thus, by removing the organization of economic activity in the control of political authority, the market would eliminate this source of undesirable power. The consumer would be protected...
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