Are we in the middle of an inflationary cycle? Does stagflation haunt our future? What should be done if we are and it does, or we aren’t and it doesn’t?
None of those questions can be answered, or even thought about, until we come to grips with what inflation is – and isn’t.
Milton Friedman famously said “inflation is always and everywhere a monetary phenomenon.” Pretty much everyone knows that, but it appears that many people don’t understand the import of his comment.
Photo credit: (AP Photo/Rick Bowmer)
