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The classic Milton Friedman argument is: higher government spending = higher inflation. Friedman made the argument that productivity (GDP growth per capita) ha
by nly 3y ago
The classic Milton Friedman argument is: higher government spending = higher inflation.
Friedman made the argument that productivity (GDP growth per capita) has no effect on inflation, and interest rates just move where you choose to measure 0, hence his famous quote that "inflation is always and everywhere a momentary phenomenon" (paraphrased)
- nly 3y agoFriedman also always said that wage growth doesn't cause inflation, but inflation causes wage growth.
- zeroonetwothree 3y agoThe quote is “inflation is always and everywhere a _monetary_ phenomenon” which means something quite different than what you said
- nly 3y agoYes, sorry, typo.