Milton Friedman's Permanent Income Hypothesis explains how a person's income—and their expectations for future income—influences their current spending and fundamentally changed the way economists think about consumption and the link between income and spending. Watch this video to learn more. | The Fraser Institute
2:12
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Milton Friedman's Permanent Income Hypothesis explains how a person's income—and their expectations for future income—influences their current spending and fundamentally
The Fraser Institute. . Milton Friedman's Permanent Income Hypothesis explains how a person's income—and their expectations for future income—influences their current spending and fundamentally changed the way economists think about consumption and the link between income and spending. Watch this video to learn more.
1.1K viewsJan 17, 2020
Permanent Income Hypothesis Explained
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The average income of farmers is less than the average income of nonfarmers, but fluctuates more from year to year. Given this, how does the permanent-income hypothesis predict that estimated consumption functions for farmers and nonfarmers differ? | Numerade
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Milton Friedman's Permanent Income Hypothesis—which explains the link between income and spending—has profound implications for fiscal stabilization policies and directly challenges the notion that governments can stimulate consumer demand in economic downturns. Watch this video to learn more. | The Fraser Institute
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