Published on June 21, 2021 by Financial Planning
“Inflation is always and everywhere a monetary phenomenon.”
Milton Friedman’s famous quote conveys a simple and powerful concept: inflation is caused by too much money chasing too few goods. We have experienced that phenomenon resulting from the wanton printing of money in the U.S. and the U.K. in the 1970s and have witnessed it, more disastrously, in Weimar Germany and in many countries in Latin America over the years.