Contribution 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... A steady rate of monetary growth at a moderate level can provide a framework under which a country can have little inflation and much growth. It will not produce perfect stability; it will not produce heaven on earth; but it can make an important contribution to a stable economic society.”
About This Quote
Source Book: Capitalism and Freedom, 1962
Inflation occurs when money grows faster than output; moderate monetary growth supports low inflation and growth.
In simple terms: Too much money vs. goods causes inflation; steady growth helps stability.
Key Takeaway
Maintain balanced monetary growth.
Themes
economics
inflation
monetary policy
Mood
analytical
cautious
Type
economic
policy
When to use this quote
- government spending
- central banking
- global trade
- financial crises
Key Concepts
price stability
economic growth
policy design
Questions to Reflect On
- How can policymakers balance growth and price stability?
- What limits exist on controlling inflation?
A Different Perspective
Monetary policy cannot eliminate all economic shocks.
