Milton Friedman on Inflation and Money Supply
ฝัง
- เผยแพร่เมื่อ 3 เม.ย. 2012
- This clip was taken from the "How to Cure Inflation" episode of the original Free To Choose TV series.
Inflation results when the amount of money printed or coined increases faster than the creation of new goods and services. Money is a "token" of the wealth of a nation. If more tokens are created than new wealth, it takes more tokens to buy the same goods. Friedman explains why politicians like inflation, and why wage and price controls are not solutions to the problem. Friedman visits Japan, U.S. and Britain.
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Why is there no one out there today like Milton that can explain these things so quickly and easily? 🤔
Dat transition doe
Love Milton Friedman, could listen all day.
the fact that he sees very little wrong with usury is a big problem in my book
So the reason why inflation is so so bad in the US, where there are many examples of goods and services being exorbitantly more expensive compared to 30 years ago while the average pay rate is not even close to the percentage of thr price increases, is because just like the last 4 presidents we've had just keep begging the National Reserve to print money?
Thank You!
From Poland!
Friedman is a legend.
MONEY PRINTER GOES BRRRRRRRRRRR
passed As-level eco with an A grade but only now do i understand why they would print so much money when it was obvious it would lead to inflation. haha
In australia back when we had certain PM, whose government led us into a recession, a recession that we had to have,we’re the exact words he said. While at the same time floating the australian dollar on the stock market,which at the was almost dollar for dollar to the american green back, which now nearly every country has to deal with, the Australian dollar is worth virtually nothing against virtually every other currency. And at present,inflation is running rampant,and the very same political corporate government is telling us that inflation is world wide, and there is nothing they can do about it, and in the meantime the useless pm of the day is gallivanting around entertaining and encouraging foreign investors, companies and governments that the land down under is open to their plunder of land and resources. Isn’t that great. Lol.
the alcohol analogy is brutal
Johnson/Friedman 2016!! (David Friedman)
try ron paul
A Friedman and Sowell or Friedman and Paul ticket would have been nice. Mr.
Friedman would never have run with Mitt.
Actual the Austrian school is an enemy to the Chicago school. Friedman was both hated and championed by Austrian economists.
Too many "dollars" chasing too few products and services--no different than many bidders at an auction.
Everything these days is price fixes, so we’ll have shortages instead of inflation, with hyperinflation on a back market like amazon or eBay sellers.
US in 2022
Tell that to Congress and the Department of Defense.
Who raises the prices?
If aggregate supply capacity in the economy increases at the same rate as the money supply, will inflation occur?
Romney?
There are folks that are of the liberal mindset that Ronald Reagan made more tax increases due to a number of factors. What Reagan had to fight his entire first term along with Paul Volker was rampant inflation that went sky high during the Carter administration. I don't know if voters would be patient enough to give a President a second term if they had to endure those countermeasures that made the economy Rocky
Such a simple Civics lesson. I just need to stock up on lots of food because food prices will go through the roof. We are headed for a bad fall and if you ever see these animals go crazy on Black Friday sales can you imagine what heinous acts of violence that will descend upon these animals when there is not food in the supermarkets?
I think your food expired
@The Squid I think right now you don't own any food and if you do you won't 3 months from now.
Inflation of the money supply lessens the value of the currency so more of it is needed to buy the same amount of goods.
I wish he was president! (and alive obviously)
The fact that the average pay 45 years ago ,4.00 an hour, would have the purchasing power today of 25.00 an hour. Compared to the current minimum and current average in the US, 45 years ago your purchasing power wast 13 percent more with the same amount as today. People making much less than the current average of 23.00 an hour, which I can't believe that to be true, or even minimum wage, would have an impossible task of living. It simply cannot be done.
none of it exists?
Take note Australia
Why has inflation been so low the past decade or so?
Steve Brady lower oil prices, more global trade, and better monetary policy have all caused low inflation in the US. Also, Demand was fairly low for years after the great recession and that caused disinflation.
Inflation is technically the expansion of the money supply, and prices rise as a result of that. The inflation (increasing prices) you’re asking about is measured by the CPI (consumer price index) which has normally yielded 1.5-2% inflation. I personally don’t believe this is accurate because the CPI fails to record other assets like, property values and rent etc, but that’s the general gist of it.
dropping velocity of money as people are buying assets as hedges, not productive assets
The US Dollar is the world reserve currency. That makes the US Dollar have artificial demand and allows for more supply without the negative effects every other currency has. If the US ever loses that status, be prepared for utter chaos in prices in the US.
Max was here
Romney/Friedman '12!
If only he was still with us.... *sigh*
Inflation comes from printing too much money, who knew?
FJB
I think in 2023 you need to edit these statements and add that inflation for an american whose currency is the dollar is not the same than for the rest of the world where their currency depreciate in favor of the "dollar" causing things such as the example they mention here in Japan.
Americans during recession, money printing and inflation turn even more to their currency and are more protectionist, something that no other country can do because they do not have that dominant position that the dollar has not even the EU.
this is what's going to happen in the USA at 2023
Buy Bitcoin!
the arguments on those topics are full of fallacies. E.g. roads are a market failure, that the market would never fulfill that demand so the government has to do it, and the same with education and healthcare which are listed as examples of market failure. And that the government has to deal with negative externalities even though the market provides mechanisms for dealing with those too.
I remember this guy. Deregulate the airlines, costs will drop and the public will benefit. So they deregulated. Most of the airlines went under or merged. Routes were dropped, the number of flight decreased, and they jammed more people into the same cramped space.
Oh, and the costs went trough the roof, plus they nickel and dime fliers to death.
Now the only way I would ever get on a plane today is if the ship my corpse in a coffin! Milton, your ideas sounded good, but the reality turned out horribly!
He was totally clueless like all neoclassicals.