Psychology Dictionary of ArgumentsHome
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| Economic policies: Economic policy refers to government measures to manage the economy. It includes decisions on monetary policy, taxes, trade and regulations aimed at promoting growth, stability and distributive justice. See also economy, interventions, interventionism, politics._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Milton Friedman on Economic Policies - Dictionary of Arguments
Mause I 57 Economic Policies/Friedman/FriedmanVsKeynesianism/FriedmanVsKeynes: Thesis: monetary policy can only achieve short-term success, but is neutral in the long term. Although expansionary monetary policy could initially increase demand and employment, workers would not be subject to monetary illusion and would demand a compensation for the inflation-related reduction in their real wages, i.e. an increase in nominal wages, which would cancel out the initial employment effect. In the long term, unemployment would therefore remain constant; monetary policy would only have caused prices to rise and would not have had any real employment effects. "Real" problems (e.g. unemployment) could only be solved by "real" measures (e.g. facilitating the recruitment of workers by relaxing employment protection, minimum wage and similar regulations). The monetarists therefore recommend a steady monetary policy with the objective of price stability. (1) - - - Brocker I 398 Economic Policy/Friedman: Friedman was afraid that the welfare state would increasingly interfere in the pursuit of individual economic interests and... Brocker I 399 ...restrict market participants. Monetary policy deals with macroeconomic problems, the average values of employment and inflation. Individual liberty rights are affected indirectly at most. >Welfare State. Brocker I 400 Economic Policy/Politics/Friedman: Friedman rejects conscription and describes the efficiency and development possibilities of the market economy system in such bright colours that there is no room and no need for government intervention, bureaucratic controls or state-organized sectors. >Interventions. The educational system, for example, which from a conservative point of view serves not least to convey "state-preserving" values and ways of thinking, would have to be privatized, as would the media, transport and energy sectors, with the result that political groups lose some of their beloved power, influence and earning potential. >Education. Peter Spahn, „Milton Friedman, Kapitalismus und Freiheit“, in: Manfred Brocker (Hg.) Geschichte des politischen Denkens. Das 20. Jahrhundert. Frankfurt/M. 2018 1. M. Friedman, The role of monetary policy. American Economic Review 58, 1968, pp. 1-17._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Econ Fried I Milton Friedman The role of monetary policy 1968 Mause I Karsten Mause Christian Müller Klaus Schubert, Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018 Brocker I Manfred Brocker Geschichte des politischen Denkens. Das 20. Jahrhundert Frankfurt/M. 2018 |
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> Counter arguments against Friedman
> Counter arguments in relation to Economic Policies
