This is considered a truism by many, but it just ain't true. There are many things that cause inflation, but money growth isn't one of them. I explain why in the context of Milton Friedman's famous "The Optimum Quantity of Money" paper.
Sunday, September 8, 2019
The Cowboy Economist - Printing Money Doesn't Cause Inflation
It's not the 11th commandment that printing money causes more inflation, says the Cowboy Economist. He points out Milton Friedman's mistakes. So what does cause inflation? That's in Part 2.
This is considered a truism by many, but it just ain't true. There are many things that cause inflation, but money growth isn't one of them. I explain why in the context of Milton Friedman's famous "The Optimum Quantity of Money" paper.
This is considered a truism by many, but it just ain't true. There are many things that cause inflation, but money growth isn't one of them. I explain why in the context of Milton Friedman's famous "The Optimum Quantity of Money" paper.
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3 comments:
“So what does cause inflation?”
Don’t tell me it’s “teh deficit!”...
Which btw it’s now up to over $1T for the year and gasoline is $2, electricity 5 cents, dozen eggs $1, ....
“So what does cause inflation?”
Don’t tell me it’s “teh deficit too big!”...
Which btw it’s now up to over $1T for the year and gasoline is $2, electricity 5 cents, dozen eggs $1, ....
Gee!
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