How to cure inflation featuring Milton Friedman

2 posts / 0 new
Last post
investorzzo's picture
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
How to cure inflation featuring Milton Friedman

The topics are on the right side of the page. Jon

land2341's picture
Status: Gold Member (Offline)
Joined: Aug 20 2009
Posts: 402
Re: How to cure inflation featuring Milton Friedman

I have spent an enormous amount of time over the last few years studying economics and political influence on economic behavior and still I find that the theoretical constructs do not appear to match up.

Friedman insists through out this film that the means to stop iinflation lies solely in government.  And that as government controls the printing of money it has to have the political will to stop spending more than it has.  But, in the very next breath he admits that the Federal Reserve is in control of the amount of money in the system and that IT keeps giving in to the government when it should not.

This, flies in the face of the idea that ALL money is LOANED in to existence.  While this accords the construct of loans to the government by the federal reserve,  it does not count at all the juggernaut of the last decade in which banks were creating money at will by loaning it to the general public, and often each other, there by adding money to the system.  

By the end of his life the concept of the one day shock into capitalism and free market had been used twice more (after Germany) in both Russia and Iraq to largely disastrous consequences each time.  When it was done in Germany it was done BY Germany.  When it was done in Russia and Iraq it was done by the US and corrupt people moved in and reaped vast rewards at the detriment of the people who suffered terribly.  

Friedman himself acknowledged that his hands off deregulatory approach had gone perhaps too far.  So does his "cure" still hold??  I don' think so.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments