Economist and Nobel Prize Winner passes away

At the age of 94, one of the most respected economists ever, Milton Friedman, passed away today. Although Mr. Friedman never held a formal appointment in government administration after World War Two, his influences were felt throughout his lifetime and will continue to shape the economic world for years to come.

In 1976 Mr. Friedman was given the ultimate recognition when he received the Nobel Prize for his "achievements in the field of consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy." His views on unemployment and inflation were revolutionary and are still used to shape policies at the Fed today. Friedman contended in the 60's that policy makers would never be able to achieve a permanent trade off between lower unemployment and higher inflation, and efforts to do so would only achieve the same unemployment with higher inflation.

Mr. Friedman served as an adviser to both Reagan and Nixon and his influence is credited to having a huge impact on the ending of the American military draft. He also served as president of the American Economic Association in 1967.

Mr. Friedman passed away in his home town San Francisco after suffering heart failure. This is truly a loss of one of the most brilliant and influential economists in American history.