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by crdoconnor 4036 days ago
This idea of Milton Friedman's that "inflation is always and everywhere a monetary phenomenon" needs to die already. It's wrong in every possible sense.
1 comments

You want to present some evidence for that claim? Some alternate ideas? Some argument on why Friedman's claim is wrong? Something besides just a contemptuous dismissal?
The evidence is staring you in the face. Brazil's hyperinflation in the 70s was triggered by a supply shock that had nothing to do with their money supply.

Zimbabwe was similar, in that they destroyed their agricultural sector but continued to buy food.

If you keep the level of money printing and spending the same but your ability to produce goods and services is suddenly hit, you will experience inflation.

If that inflation reaches a trigger point, it will start to feed upon itself in a positive feedback loop, causing what we know of as hyperinflation.

Reduce income inequality and promote social rise creates inflation, too. In the past you could pay someone R$300/month and have her cleaning your home everyday. Now the same value doesn't pay one week. Inflation to the riches, better work for the poors.

Controlled inflation == growth.