[WalterBright]

"As we have repeatedly emphasized, maintenance of the gold Standard means that the stock of money must be whatever is necessary to balance international payments. On the other hand, the real bills criterion sets no effective limit to the quantity of money."

-- Monetary History of the United States, pg 191, Friedman

Endemic inflation set in the next year.

[bumby]

Didn't Friedman also acknowledge that more recent monetary influences (1980 onward) deviate from the data he used to draw his conclusions in Monetary History of the United States? In other words, the statistics he used wouldn't necessarily draw the same conclusions today?

In that context, his statement is fine as a historical study but may not be suitable to model current economics.