The Birthday of Milton Friedman (1912) — Mathematics of Economics

Milton Friedman, born 31 July 1912, transformed economics with his mathematical approach to monetary policy and consumption. His permanent income hypothesis used statistical methods to explain why people spend not based on current income but on expected long‑term income. He also introduced the concept of the natural rate of unemployment. Though not a mathematician himself, his work relied heavily on econometrics — the application of statistical and mathematical methods to economic data. He received the Nobel Prize in Economics in 1976.