Customer Quote by Milton Friedman
“Rapid increases in the quantity of money produce inflation. Sharp decreases produce depression.”
About This Quote
Increasing money supply tends to raise prices, while decreasing it can lead to economic downturns.
In simple terms: Money supply affects inflation and recession.
Watch monetary policy.
Themes
Mood
Type
When to use this quote
- central bank decisions
- government spending
- investment planning
- personal budgeting
Key Concepts
Questions to Reflect On
- How does money supply affect your daily life?
- What safeguards can prevent extremes?
Policy effects can be delayed and uneven.