Institutional amnesia
Jun 24, 2021
3 minutes
A MONG HIS MANY quotable remarks, Milton Friedman’s observation that “inflation is always and everywhere a monetary phenomenon” stands out. Friedman’s claim was not just that excessive growth of the quantity of money was one of several causes of inflation. He had a more definite and far-reaching conclusion in mind.
In his view, excessive growth of the quantity of money — with the rate of increase far ahead of that of real output — was a necessary and sufficient condition for inflation. Further, once
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