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Learn the basics of inflation, what it means for your pocket book, your gas tank, and your grocery bill. Listen to Milton Friedman's explanation of inflation as a monetary phenomenon and how governments control the quantity of money.
This prin-ciple underlies the monetary policy framework of major economies today. Friedman was particularly scathing about “cost-push” theories, prevalent in the 1960s and 1970s, that attributed high inflation to autonomous increases in costs rather than to excess demand.
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Friedman argues that the British inflation crisis of the 1970s was the result of bad economic policies, such as fixed exchange rates, deficit financing, and wage and price controls. He criticizes the mainstream economics for ignoring the role of monetary factors and the natural rate of unemployment.
Mar 21, 2016 · It is a cure that's easy to describe but difficult to apply: The government must reduce spending and print less money. The alternatives are both recession and double-digit inflation. Recorded at...
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- Taxation without Representation
- The Keynesian Theory
- Escalator Clauses
- The Financial Intermediaries
- Discussion
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In a way the argument for indexing both taxes and government borrowing has only an incidental relation to the present problem of inflation. Its fundamental purpose, in my opinion, is to improve our political institutions. As I have repeatedly said, inflation is a form of taxation without representation. It is the kind of tax that can be imposed wit...
That argument is capable of being logically valid but I think it is not empirically relevant. It implicitly assumes that somehow or other the total expenditures of governments are independent of their sources of revenue. A great fallacy in much of the so-called Keynesian analysis has been to suppose that you can treat expenditures as if they were d...
In the wage field in the United States there are something like 10 million union employees covered by cost-of-living escalator clauses. In Britain you did an unwise thing in imposing by legislation a threshold agreement: that was undesirable because it was exactly this imposition of a general rule rather than allowing the arrangements to be reached...
We have in the United States, as you have here, savings and loan associations,2 mutual savings banks, and so on, of very major magnitude. Their total liabilities at the moment are something like $400 billion. These institutions have been ‘gambling’ for quite a long time by lending long and borrowing short and they are now stuck with a portfolio of ...
GEORGE SCHWARTZ—With the ‘greenback’ debacle in the middle of the 19th century private people did index their contracts by inserting a gold clause. What happened to that solemn contract between private people agreeing that the terms of the contract should be based on the gold clause? It was arbitrarily abrogated by the Roosevelt administration. Are...
Friedman argues that inflation is a form of taxation without representation and that indexing taxes and government borrowing is essential to improve political institutions. He also discusses the technicalities and benefits of indexing and the moral and economic case for purchasing power securities.
INFLATION AND UNEMPLOYMENT. Nobel Memorial Lecture, December 13, 1976. by MILTON FRIEDMAN The University of Chicago, Illinois, USA. When the Bank of Sweden established the prize for Economic Science in memory of Alfred Nobel (1968), there doubtless was - as there doubtless still remains - widespread skepticism among both scientists and the ...
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May 23, 2024 · Friedman’s rational behavior argument was that consumers dealing with long-term inflation eventually build expectations of future inflation into saving and spending decisions, which eventually ...
