Customer Quote by Milton Friedman
“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
About This Quote
Source Book: Capitalism and Freedom, 1962
Inflation occurs when money supply grows faster than real output, causing price rises.
In simple terms: Too much money, too few goods, leads to higher prices.
Key Takeaway
Control money growth to curb inflation.
Themes
economics
monetary policy
inflation
growth
policy
Mood
analytical
concerned
informative
Type
philosophical
inspirational
When to use this quote
- central banking
- budget planning
- investment decisions
- public policy debates
- inflation targeting
Key Concepts
Quantity theory of money
price level
real output
Questions to Reflect On
- How can policymakers balance money supply and growth?
- What role do expectations play in inflation?
A Different Perspective
If output grows faster than money, inflation may still rise due to expectations.
