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I know of no severe depression, in any country or any…

“I know of no severe depression, in any country or any time, that was not accompanied by a sharp decline in the stock of money, and equally of no sharp decline in the stock of money that was not accompanied by a severe depression.” quote by Milton Friedman
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“I know of no severe depression, in any country or any time, that was not accompanied by a sharp decline in the stock of money, and equally of no sharp decline in the stock of money that was not accompanied by a severe depression.”

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.

Economic depressions are tightly linked to sharp drops in money supply.

In simple terms: Money supply decline causes depressions.

Key Takeaway

Stabilize money supply to avoid severe downturns.

Themes

economics inflation depression

Mood

analytical serious

Type

academic economic

When to use this quote

  • government budgeting
  • central banking
  • investment strategies

Key Concepts

monetary policy financial cycles

Questions to Reflect On

  • How can policy balance money supply and growth?
  • What safeguards prevent monetary collapse?
A Different Perspective

Other factors also influence depressions beyond money supply.

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