[orwin]

> Friedman was still right.

that would made his inflation theory the only theory he was right about.

Even in this case, 90+% of the money supply is created by private banks, so wouldn't that make big bank responsible for inflation?

[incrudible]

Banks create this money through lending with the intent to profit, which means they take on risks they would not otherwise take on if so called risk free interest is suppressed by central bank policies like low overnight rates and QE.

Of course, the money created in this way is spent mostly on assets, so all the price inflation mostly happens there, not in the CPI. Friedman is still right if we look at these markets as largely disjoint.