"It is with considerable reluctance that I criticize the monetarists, because, though I consider their proposed monetary policy unfeasible, they are after all much more nearly right in their assumptions and prescriptions than the majority of present academic economists. The simplistic form of the quantity theory of money that they hold is not tenable; but they are overwhelmingly right in insisting on how much "money matters," and they are right in insisting that in most circumstances, and over the long run, it is the quantity of money that is most influential in determining the purchasing power of the monetary unit. Other things being equal, the more dollars that are issued, the smaller becomes the value of each individual dollar. So at the moment the monetarists are more effective opponents of further inflation than the great bulk of politicians and even putative economists who still fail to recognize this basic truth."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Imported from EN Wikiquote
https://en.wikiquote.org/wiki/Monetarism
Revision History
No revisions have been submitted for this quote.
Categories
Monetarism
28 quotes on TrueQuotesView all quotes by Monetarism →
Related Quotes
"Reagan had the opportunity to perform this quick surgery when he came into office. Instead, he turned his economic po…"
"Although there are deep and abiding differences between Chicago school monetarists and Austrian monetary theorists, t…"
"Monetarism was a powerful force in economic debate for about three decades after Friedman first propounded the doctri…"
"Gore Vidal, the American writer, once described the American economic system as 'free enterprise for the poor and soc…"
"Milton Friedman and Anna Schwartz’s monumental Monetary History of the United States eventually helped to displace Ke…"
"Friedman's failure to see that monetarism would ultimately lead to the excesses of Keynesian tinkering in the economy…"
"However, if Friedmanite monetarism was anything, it was naïve about political reality. The fatal flaw of Friedman's f…"
"The world probably would have been much better off had macroeconomics never been devised. Although I have in mind Key…"
"Monetarism means honest money. It means that the money is backed properly by the production of goods and services."
"Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more r…"