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Central bankers always try to avoid their last big…

“Central bankers always try to avoid their last big mistake. So every time there's the threat of a contraction in the economy, they'll over stimulate the economy, by printing too much money. The result will be a rising roller coaster of inflation, with each high and low being higher than the…” quote by Milton Friedman
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“Central bankers always try to avoid their last big mistake. So every time there's the threat of a contraction in the economy, they'll over stimulate the economy, by printing too much money. The result will be a rising roller coaster of inflation, with each high and low being higher than the preceding one.”

Milton Friedman

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Policymakers often overreact to economic downturns by flooding the market with money, causing volatile inflation cycles.

In simple terms: Overstimulating the economy leads to inflation swings.

Key Takeaway

Avoid excessive monetary stimulus.

Themes

economics policy inflation

Mood

cautious analytical

Type

economic policy

When to use this quote

  • central banking
  • budget planning
  • investment decisions

Key Concepts

Keynesianism monetary policy

Questions to Reflect On

  • What signs indicate that monetary stimulus is becoming excessive?
  • How can policymakers better predict inflation trends?
A Different Perspective

Policy must balance stimulus with long‑term stability; timing is critical.

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