This economist questioned the Phillips curve by projecting that unemployment would never reach zero, but instead could only reach around 6 percent without triggering quicker inflation, known as its "natural rate," or the NAIRU.
This thinker suggested that people spend about the same percentage of their income on consumption, no matter how large, in A Theory of the Consumption Function, which begat the "permanent income hypothesis." His namesake non-parametric test involves ranking each item by subject and tallying the columns, while his namesake rule advocated setting the nominal (*) interest rate at zero. This economist questioned the Phillips curve by projecting that unemployment would never reach zero, but instead could only reach around 6 percent without triggering quicker inflation, known as its "natural rate," or the NAIRU. The author of Capitalism and Freedom, for 10 points, name this leader of the Chicago school of economics and founding theorist of monetarism.
This thinker suggested that people spend about the same percentage of their income on consumption, no matter how large, in A Theory of the Consumption Function, which begat the "permanent income hypothesis."
Milton {Friedman}