Customer Quote by Milton Friedman
“If you continue to use monetary policy to attempt to promote full employment the result would be that you would have higher inflation, and that you would not have lower unemployment.”
About This Quote
Source Book: Capitalism and Freedom, 1962
Using monetary policy to force full employment raises inflation without lowering unemployment
In simple terms: Monetary policy can’t guarantee low unemployment and low inflation
Seek balanced economic policies
Themes
Mood
Type
When to use this quote
- budget planning
- business strategy
- government policy
- investment decisions
Key Concepts
Questions to Reflect On
- Can you design policies that achieve both goals?
- What are the risks of over‑reliance on monetary tools?
Policy may create trade‑offs and unintended consequences