The following are some lessons that …show more content…
"Inflation is always and everywhere a monetary phenomenon."
The most famous excerpt from Friedman's writings and speeches is, "Inflation is always and everywhere a monetary phenomenon." He defied the intellectual climate of his era and reasserted the quantity theory of money as a viable economic tenet. In a 1956 paper titled "Studies in the Quantity Theory of Money," Friedman found that, in the long run, increased monetary growth increases prices but does not really affect output.
Friedman's work busted the classic Keynesian dichotomy on inflation, which asserted that prices rose from either "cost-push" or "demand-pull" sources. It also put monetary policy on the same level as fiscal policy. Friedman's insight was so sharp in his criticism of the Federal Reserve's mismanagement of the money supply that the Fed actually stopped releasing minutes from the board's meetings to avoid his scrutiny.
4. Technocrats cannot control the economy.
In a 1980 Newsweek column, Milton Friedman said: "If you put the federal government in charge of the Sahara Desert, in five years there'd be a shortage of