Bankers Quote by Milton Friedman
“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.”
About This Quote
Source Interview: The New York Times, 1970
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.
![“What I think is bugging this guy [Steven Lerner] is the belief that debt - forced debt upon middle-class people, students (i.e., student loans and so forth) - has made Wall Street bankers and financial people excessively, unfairly, out-of-proportionally rich.” quote by Rush Limbaugh](https://sms4smile.com/quotes/img-quotes/f15/rush-limbaugh-28_bankers_what-i-think-is-bugging-this-guy-steven_28590.jpg)
