Essential Milton Friedman: The Theory of Money and Prices
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- เผยแพร่เมื่อ 6 ต.ค. 2024
- One of Milton Friedman's keen interests as an economist was how inflation-increases in the overall price level of goods and services-affected the economy. At the heart of his theory about the cause of inflation is the relationship between money and the availability of goods and services. Watch this video to learn how Friedman's research revolutionized the way most economists think about money and inflation.
Make this go viral. It needs to be taught so we hold politicians accountable and don’t repeat mistakes.
Biden has no desire to hear this.
This has never been more relevant
good quality videos for sure, I hope there are more to come
Agree with comments re QE, which is reverse side of interest rates at 1/4 to 1/2 per cent. Only inflation since pre 2008 crisis has been entirely cost push, which Friedman never properly addressed. And constant velocity theory of circulation of money? Great mind; like to think he would have had an interesting take on 1970 to 2019. All bets off thanks to Covid.
The Fed knows this , but got to get on with the 'Great Reset ' right Schwab
How true, increasing money devalues the currency and causes Inflation.
Money supply and available money are two different things. When it comes to inflation, there is no theoretical difference between monetary reserves (or savings) that are yet to be spent, and money that is yet to be printed. Additionally, individuals taking on credit/debt can increase the money supply in the same way that printing money can.
Nobody:
me: why are the scissors so expensive
This was economy B.B. (Before Bezos)
milton is fucking smart
So why has the Fed dumped tons of money in the supply and wages have been stagnant?
They key phrase was "over time". Just wait.
@@troupervision what will happen over time?
Because America frequently adheres to a kenysian monetary philosophy.
please note: The Fraser Institute is a libertarian-conservative Canadian public policy think tank and registered charity. All information must be taken with a grain of salt. Note all things they say come with their agenda.
As people wait for their 1400$ Stimmmmy cheques... LOL
There has been QE for years with next to no inflation. That blows theat simplistic argument in the video to pieces.
Are you reconsidering now?
@@PathfinderHistoryTravel Most of the recent increases in inflation are due to demand outstripping supply of goods. Oil prices have doubled over the past 6 months exacerbated by the Russo-Ukraine war reducing oil and gas exports from Russia to the West. Resources for construction have been impacted by Covid restrictions for the past 2 years. Ask anyone who is building a house what has happened to material prices over the past 2 years. If inflation was caused by QE then inflation would be expected to increase in line with QE when it started in 2008-09. However, inflation has only really started to take off in the last 2 years and accelerated in the past 6 months. Food supplies are falling due to the Ukraine war so demand for less food will increase, so food prices will now start to increase. QE (i.e printing money) is a policy of the Federal Reserve. Remember the Fed is just a bunch of private Banks. 'Although an instrument of the US Government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the President or by anyone else in the executive or legislative branches of government, it does not receive funding appropriated by Congress, and the terms of the members of the board of governors span multiple presidential and congressional terms." en.wikipedia.org/wiki/Federal_Reserve
Lewsinkyed your theory out the fucking water.
@@adamnoir5014 never cite Wikipedia. And gonna disagree with you. Got little to do with supply shortages it’s the billions pissed into the economy on bullshit programs that amounted to nothing.
Friedman was only partially correct...money supply does affect inflation, but so does the supply of goods, even more so than money. Money supply doesn't affect the demand for goods...that's why OPEC has to reduce production to increase the price of oil...it's not the US govt that makes the price of gas go up.
I would agree with your first statement ONLY because of digital currency and the lack or lesser quantity of paper/coin currency in circulation today. Reference the second I would disagree monetarism was the fundamental concept of Milton Friedman the money supply DOES before digital currency affect the price of goods and services. The more money is supply the less it’s value hence why the foreign exchange market / racket exist. As far as the price of oil that’s relative to how much is produced domestically versus imported versus how much is raised via pork input profits increases.
Rumour has it that due to Friedman’s inflation his wife would charge him more money for sex because she had the limited supply and he had the inflating demand 🤣🤣🤣
Hasn't this theory been debunked?
As the world has transitioned to digital currency the value of monetarism which was Friedmans baby has lost credibility. So debunked NO BUT more difficult to prove.
Absolute Nonsense, as money becomes more available the cost of commodities increases, the only thing that increases is Human Greed, so stop BSing people !!!🤣🤣🤣
Your saying as there’s more money in circulation the cost of goods and services rises?
Corporations experience inflation via raw material price increases. They add that cost to the price of their products but also attempt to maintain the same profit margin. Therefore, the profit margin percentage being the same or higher is the greed factor. Because the finished product cost more to make and the corporation has little to no compassion as a non-entity, consumers see prices go up higher than the corporation does.
Example. Product cost $1 to make. Profit margin is 40%. Cost to consumer is $1.40.
Cost for corporation
goes up 20%. Product now costs $1.20 to make. 40% added to the new cost is $1.68.
Consumer sees finished product rise to $1.68 and experiences 40% inflation.
@@themooseisloose9164
Thanks for the great explanation!! My granddaughter is taking an economics class in high school and this can certainly help her with an assignment
Capitalism continuously goes thru boom and bust.
Ur dumb
@@justincox5362 *you are
Would money increase create money jobs off set the inflatiin that is mean only if consumer are conscientiously use money as tool of production not destruction like weaponry or terrorism or hazardous condition in products or waste so two main cost factor in : private cost of produce goods and waste treatment of after life of product and the second cost is environment cost like natural resource depletion and harmful biproduct like toxic waste or air water and extreme discomfort heat or future degrading of life those two cost add up the consuming price and second price is greedy profit and opportunity cost of workers provide the services