Milton Friedman was keenly interested in how price changes—or inflation—affected the economy. One of his key insights, which defied conventional economic theory at the time, was that using inflation to control unemployment was not sustainable. This finding revolutionized central bank policy around the world. Watch this video to learn more. | The Fraser Institute
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Milton Friedman was keenly interested in how price changes—…
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112K views · 3.2K reactions | Milton Friedman on the root cause of...
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Milton Friedman explains what causes inflation
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Milton Friedman on the inflation-unemployment tradeoff: "In the long run there is no relation between inflation and unemployment." Once inflation becomes expected—whether it's 2% or 10%—all wages, prices, and interest rates adjust accordingly. The temporary stimulus disappears. The critical lesson: it's not inflation that matters, but whether inflation is higher than expected. | Free To Choose Network
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