Profile of an Economist Research Paper Example | Topics and Well Written Essays - 1250 words

Profile of an Economist - Research Paper Example Friedman presented high expertise in the field of business that made him a renowned economist. In the year of 1951, he won the â€Å"John Bates Clark Medal,† an award that recognized economists under age of forty who presented commendable performance (Ruger 90). Furthermore, he received the Nobel Prize in 1976 for his contributions in the field of consumption examination, monetary history and concepts, as well as for his effort in describing the stabilization policy. The economist chaired the Chicago school of economics where he guided research plan of the economics profession. The scholar also worked as the chairperson of the American Economic Association in 1967 (Wahid 14). Furthermore, the scholar served as a senior research fellow at the Stanford University after retiring from the University of Chicago. Some surveys of economists have identified Friedman as a well-liked economist of the 20th century after John Keynes. Friedman explored various economics-related theories an d analytical procedures highlighting informative concepts. Nedomlelova (32) observes that Friedman was great scholar who had excellent knowledge of economics. The economist’s initial works include the 1945 publication titled the â€Å"Income from Independent professional Practice† that he coauthored with Simon Kuznets. This work was very relevant in the field of business and the report attracted a global attention. ... the need of adjusting such regulation in order to create constructive competition that would persuade delivery of quality services at sustainable fees. This provided strategists with effective managerial tools (Friedman et al. 32). Friedman’s effort in the development of the Theory of Consumption Function The scholar has substantially contributed in the development of the economic theories. His earliest prominent work includes the 1957 publication in which he described A Theory of the Consumption Function (Friedman & Ebenstein 19). The scholar developed the theory from the Keynesian perception that individuals and households have a tendency of adjusting their expenditures on consumption to align them with their income (Friedman & Ebenstein 26). The economist highlighted that individual’s yearly consumption reflects a function of their â€Å"permanent income.† He introduced this term as a measure of the aggregate income individuals expect over a few years. The the ory was an expression of the permanent income hypothesis, the concept that proposes that household’s consumption and investment decisions are mainly defined by changes in permanent income, but not temporary changes that household members experience within their activities. These ideas were essential because they provide bases for developing future business theories that has enriched the field (Brittan 2). Friedman challenged Keynes ideas claiming that the scholar based his consumption models on psychological assumptions. He emphasized the need of considering individuals as rational thinkers who make plans on how to spend their resources over their families. Friedman was not primarily objecting the Keynesian ideas because a reputable Keynesian economist Franco Modi-gliani also made the same observation.