A Theory of the Consumption Function

Viac o knihe

The book presents the permanent income hypothesis (PIH), a significant theory developed by Friedman to address shortcomings in classical Keynesian consumption theory, particularly regarding the stability of savings rates amid rising real incomes. Friedman synthesizes various competing theories of consumer behavior, framing them as special cases within his broader hypothesis. He supports his claims with statistical evidence, making a compelling case for understanding consumer behavior in economic contexts.