--- title: "Meaning & Key Takeaway of: Rapid increases in the quantity of money…" description: "\"Rapid increases in the quantity of money produce inflation. Sharp decreases produce depression.\" — Milton Friedman" image: "https://sms4smile.com/quotes/i/156/milton-friedman-616_customer_rapid-increases-in-the-quantity-of-money_2881894.png" --- # Rapid increases in the quantity of money produce… ![“Rapid increases in the quantity of money produce inflation. Sharp decreases produce depression.” quote by Milton Friedman](https://sms4smile.com/quotes/i/156/milton-friedman-616_customer_rapid-increases-in-the-quantity-of-money_2881894.png) [Download](https://sms4smile.com/quotes/i/156/milton-friedman-616_customer_rapid-increases-in-the-quantity-of-money_2881894.png) [Open image](https://sms4smile.com/quotes/i/156/milton-friedman-616_customer_rapid-increases-in-the-quantity-of-money_2881894.png) > “Rapid increases in the quantity of money produce inflation. Sharp decreases produce depression.” [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Increasing money supply tends to raise prices, while decreasing it can lead to economic downturns. **In simple terms:** Money supply affects inflation and recession. Key Takeaway Watch monetary policy. Themes economics inflation recession Mood analytical concerned Type educational informative When to use this quote - central bank decisions - government spending - investment planning - personal budgeting Key Concepts macroeconomics policy analysis Questions to Reflect On - How does money supply affect your daily life? - What safeguards can prevent extremes? A Different Perspective Policy effects can be delayed and uneven. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Depression](https://sms4smile.com/quotes/about/depression/) [Inflation](https://sms4smile.com/quotes/about/inflation/) [Money](https://sms4smile.com/quotes/about/money/) ## Related quotes > [The power to determine the quantity of money... is too important, too pervasive, to be exercised by a few people, however public-spirited, if there…](https://sms4smile.com/quotes/milton-friedman/the-power-to-determine-the-quantity-of-money-is-too-important-too-2/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [The power to determine the quantity of money... is too important, too pervasive, to be exercised by a few people, however public-spirited, if there…](https://sms4smile.com/quotes/milton-friedman/the-power-to-determine-the-quantity-of-money-is-too-important-too/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [What happened was that for every $100 of money, by which I mean the cash that people keep in their pockets, and the deposits…](https://sms4smile.com/quotes/milton-friedman/what-happened-was-that-for-every-100-of-money-by-which-i-mean-the/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [The use of quantity of money as a target has not been a success. I'm not sure that I would as of today push…](https://sms4smile.com/quotes/milton-friedman/the-use-of-quantity-of-money-as-a-target-has-not-been-a-success-i-m/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Solar bursts typically last from half a minute to a couple of minutes and often sound like a rapid hissing noise followed by a…](https://sms4smile.com/quotes/honor-harger/solar-bursts-typically-last-from-half-a-minute-to-a-couple-of-minutes/) [Honor Harger](https://sms4smile.com/quotes/author/honor-harger/) > [I have to admit it that the large quantity of US money poured into Vietnam provoked ii...a lot of bad habits.](https://sms4smile.com/quotes/bui-diem/i-have-to-admit-it-that-the-large-quantity-of-us-money-poured-into/) [Bui Diem](https://sms4smile.com/quotes/author/bui-diem/) > [Inflation is an increase in the quantity of money without a corresponding increase in the demand for money, i.e., for cash holdings.](https://sms4smile.com/quotes/ludwig-von-mises/inflation-is-an-increase-in-the-quantity-of-money-without-a/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [The quantity of money, which is readily parted with to obtain a thing is called its price.](https://sms4smile.com/quotes/jean-baptiste-say/the-quantity-of-money-which-is-readily-parted-with-to-obtain-a-thing/) [Jean-Baptiste Say](https://sms4smile.com/quotes/author/jean-baptiste-say/) > [If you increase the quantity of money, you bring about the lowering of the purchasing power of the monetary unit.](https://sms4smile.com/quotes/ludwig-von-mises/if-you-increase-the-quantity-of-money-you-bring-about-the-lowering-of/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Prosperity has nothing to do with the quantity of money that we have in our pockets, but rather with the quantity of goods that…](https://sms4smile.com/quotes/maxime-bernier/prosperity-has-nothing-to-do-with-the-quantity-of-money-that-we-have/) [Maxime Bernier](https://sms4smile.com/quotes/author/maxime-bernier/) > [No increase in the welfare of the member of society can result from the availability of an additional quantity of money.](https://sms4smile.com/quotes/ludwig-von-mises/no-increase-in-the-welfare-of-the-member-of-society-can-result-from/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [No central banker would disagree with the proposition that inflation is primarily a monetary phenomenon. Not one of them will disagree that every inflation…](https://sms4smile.com/quotes/milton-friedman/no-central-banker-would-disagree-with-the-proposition-that-inflation/) [Milton Friedman](https://sms4smile.com/quotes/author/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…](https://sms4smile.com/quotes/milton-friedman/inflation-is-always-and-everywhere-a-monetary-phenomenon-in-the-sense/) [Milton Friedman](https://sms4smile.com/quotes/author/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…](https://sms4smile.com/quotes/milton-friedman/inflation-is-always-and-everywhere-a-monetary-phenomenon-in-the-sense-2/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [By making conscious choices in our behavior and where we focus our attention, we can transform our experience of our body, decrease our biological…](https://sms4smile.com/quotes/deepak-chopra/by-making-conscious-choices-in-our-behavior-and-where-we-focus-our/) [Deepak Chopra](https://sms4smile.com/quotes/author/deepak-chopra/) ## More by Milton Friedman > [The government solution to a problem is usually as bad as the problem.](https://sms4smile.com/quotes/milton-friedman/the-government-solution-to-a-problem-is-usually-as-bad-as-the-problem/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [I believe the role that people like myself have played in the transformation of public opinion has been by persistently presenting a different point…](https://sms4smile.com/quotes/milton-friedman/i-believe-the-role-that-people-like-myself-have-played-in-the/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [To really understand something you've got to reduce it to its principles.](https://sms4smile.com/quotes/milton-friedman/to-really-understand-something-you-ve-got-to-reduce-it-to-its/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [It is a mark of how far we have gone on the road to serfdom that government allocation and rationing of oil is the…](https://sms4smile.com/quotes/milton-friedman/it-is-a-mark-of-how-far-we-have-gone-on-the-road-to-serfdom-that/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Economic freedom is an essential requisite for political freedom. 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