The late American economist Milton Friedman's contribution to the debate over stabilization policy may be summarized as follows: governments do not need to stabilize the economy, they cannot do so, and they should not try.

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Milton Friedman argued that government intervention in the economy through stabilization policies (like adjusting interest rates or government spending to manage economic cycles) is often ineffective, can lead to unintended consequences, and that the economy is better off self-regulating through the natural dynamics of the free market.

The Late American Economist Milton Friedman's Contribution to the Debate