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Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid incre
by baremetal 4y ago
Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
- HarryHirsch 4y agoWe have a housing crisis and an energy crisis. There's absolutely no need to drag monetary theory in when the outcome is due to failed industrial policy.
- A4ET8a8uTh0 4y agoWhy can't it be all three? I understand that it is easier to sell it as a specific political problem, but I am genuinely tired of arguing partial inflation problem, because discussing it as a whole undermines some political angle.
- pjc50 4y agoWell, he's wrong, given that output has been knocked about by a large number of non-monetary factors such as COVID, supply chain issues, the war with Russia, and (yet again) oil and gas.
- tdehnel 4y agoThe way I see it, even if there’s a war or Covid or whatever, if people don’t have more money to spend, they can’t pay higher prices. Then you get a recession. If they do have the money (because you printed more) they pay the higher prices. Then you get inflation.