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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.” quote by Milton Friedman
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“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.”

Milton Friedman

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

Key Takeaway

Seek balanced economic policies

Themes

economics policy inflation

Mood

analytical critical

Type

economic political

When to use this quote

  • budget planning
  • business strategy
  • government policy
  • investment decisions

Key Concepts

macroeconomic theory central banking

Questions to Reflect On

  • Can you design policies that achieve both goals?
  • What are the risks of over‑reliance on monetary tools?
A Different Perspective

Policy may create trade‑offs and unintended consequences

2.3 out of 5 (10 ratings)

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