Schools of Economic Thought Part 4: The Chicago Economists

This Friday on Fiscally Savage, we discuss the Chicago school of economics — an influential school of thought led by Nobel Laureate Milton Friedman that has left an indelible mark on economic theory and policy across the globe.

 

How did Friedman and his colleagues differentiate themselves from their contemporaries, like the Austrian economists? And how did their distinctive views on topics such as inflation, monetary policy, and business responsibility shape the world we live in today?

 

Join me in this episode as I explore the roots of the Chicago school of economics, its defining principles, its influence on economic thought and policy in the United States, and more.

 

Show Highlights

 

• [01:08] The origin of the Chicago school of economics

• [02:01] The core principles of the Chicago school of economics

• [10:02] How the Chicago economists differed from the Austrian economists

• [12:55] How the Chicago economists differed from the classical economists

• [15:50] George Stigler and Gary Becker’s ideas that became core to the Chicago school of economics

• [19:17] Milton Friedman’s ideas in “A Monetary History of the United States”

• [21:40] The key differences between Friedman's and John Maynard Keynes’ ideas

• [25:59] The social responsibility of businesses, according to Friedman

• [28:06] Monetary policy vs. fiscal intervention

• [32:34] How a negative income tax would work, according to Friedman

• [35:32] How Friedman viewed inflation

 

Links and Resources

 

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Books Mentioned

 

🟢 An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith

🟢 A Monetary History of the United States, 1867-1960 by Milton Friedman and Anna Schwartz