Understanding Inflation
Don and Russ discuss the concept of inflation, exploring Milton Friedman's statement that inflation is always and everywhere a monetary phenomenon. They delve into the factors that can cause inflation, including changes in money supply and demand, bank behavior, and regulations. The equation of exchange, MV equals PQ, is introduced to explain the relationship between money supply, velocity, price, and quantity. The hosts also touch on the impact of monetary changes on price changes, assuming other variables remain constant.In this clip
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