Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

Question

Social Studies

Jamiya Marshall

14 February, 14:18

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

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Answers (2)

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Bradyn Shaw · Answer 1

Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.

Aidan Bond · Answer 2

Friedman suggested monetary policy must be used to control aggregate demand whereas Keynes felt taxation policy was the best approach. Friedman said fiscal policy must be used to influence aggregate demand while Keynes thought monetary policy was the best approach. Keynes claimed in little economic intervention by the government, while Friedman said that the administration should take an active role. Keynes said that the market was too difficult to talk about aggregates, although Friedman said that higher aggregate demand might solve problems.