A Theory Of The Consumption Function by Milton Friedman

A Study in the Field of Economics

This book presents a groundbreaking study of the consumption patterns of individuals and households. The author challenges the traditional Keynesian consumption function which posits that individuals and households adjust their consumption spending in response to changes in income. Instead, the author proposes the "Permanent Income Hypothesis," asserting that consumers' spending habits are determined not by current income but by their longer-term income expectations. This influential theory has had a significant impact on economic policy and remains a cornerstone of macroeconomic theory.

The 2801st greatest book of all time


Published
1957
Nationality
American
Type
Nonfiction
Pages
Unknown
Words
Unknown
Original Language
English
Alternate Titles
None

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