Milton Friedman Theory. Milton friedman was one of the leading economic voices of the latter half of the 20th century. Milton friedman s economic theories became what is known as monetarism which built on and overturned.
This shareholder primacy approach views shareholders as the economic engine of the organization and the only group to which the firm is socially responsible. Milton friedman was one of the leading economic voices of the latter half of the 20th century. He said that the antidote to inflation was higher interest rates which in turn reduces the money supply.
The friedman doctrine also called shareholder theory or stockholder theory is a normative theory of business ethics advanced by economist milton friedman which holds that a firm s main responsibility is to its shareholders.
This shareholder primacy approach views shareholders as the economic engine of the organization and the only group to which the firm is socially responsible. American economist milton friedman developed the doctrine as a theory of business ethics that states that an entity s greatest responsibility lies in the satisfaction of the shareholders the business should therefore always endeavor to maximize its revenues to increased returns for the shareholders. Prices then fall as people would have less money to spend. With george stigler and others friedman was among the intellectual leaders of the chicago school of economics a.
