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The Nobel Prize in Economics by the Royal Swedish Academy of Science. His main published
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works in economics include Taxing to Prevent Inflation (1943), Essays in Positive Economics ( 1953),
A Theory of the Consumption Function (1957), A Program for Monetary Stability (1960), Price Theory
(1962), A Monetary History of the United States 1867—1960 ( 1963), Inflation: Causes and Consequences
(1963), The Great Contraction (1965), The Optimum Quantity of Money (1969), A Theoretical
Framework for Monetary Analysis (1971), An Economist’s Protest: Columns in Political Economy
(1975), Free to Choose. A Personal Statement (1980) and Monetary Trends in the United States and
the United Kingdom (1982).
Friedman has made contributions to the theory of distribution, arguing for an approach in which
High incomes are regarded as a reward for taking risks. He was a leading defender of the Marshallian
Tradition in microeconomics (Marshall, A.) and made a methodological defence of classical economics
That stimulated controversy for a decade. His permanent-income hypothesis was also an important
Contribution to the theory of the consumption function. His main work, however, was on the
Development of the quantity theory of money and its empirical testing. He extended the Fisher equation
(Fisher, I.) to include other variables such as wealth and rates of interest, and made statistical
Tests to attempt to measure the factors determining the demand for money to hold. Friedman advocated
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