what is the main difference between Keynes' and Friedman's economic theories?

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This was selected as Best Answer Keynes focused on spending and demand (breaking down spending into seperate components), the liquidity-preference theory of short term interest rates, and government intervention to prevent economic extremes of booms and busts. To this, Friedman added theories about prices and inflation. Friedman believed that too much government intervention would lead to uncrontrollable inflation. Though both believed in government macroeconomic management, Keynes underestimated the role of monetary policy, while Friedman gave prominence to it. Keynes felt it was important to keep government spending stable, while Friedman emphasized stability of the money supply. Keynes was an advocate of government economic intervention through taxes, subsidies, and regulation, while Friedman did not trust governments to fix economic problems because they were corrupt an inept. He believed that public and private interests were not the same. more
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