This short article simply posts the contradicting theories of Friedman. I researched this yet again because I read the book of Paul Krugman (summarised here ), who is an advocate of keynesism.
In what way is contradicting Friedman Keynes' theories? His main concept is that the government should not intervene in the markets. He had many theories, but probably this is the one that opened a lot of debate. One of his other more famous policies was the monetary one. Based on the equation (MV=PT), he deduced that an increase in the money supply will result in an increase in prices. He is also famous for this phrase: "inflation is always and everywhere a monetary phenomenon."
Now, I think that inflation is not really a disaster. On the one hand, it helps labour market respond to the economy and on the other hand, it is a sign of progress.
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