Permanent income hypothesis

From Citizendium
Jump to navigation Jump to search

Permanent income hypothesis [r]: The theory proposed by Milton Friedman that consumers attempt to adjust their consumption in response to variations in income in order to maintain an unvarying living standard - thus limiting their short-term response to a fiscal stimulus. [e]

This article contains just a definition and optionally other subpages (such as a list of related articles), but no metadata. Create the metadata page if you want to expand this into a full article.