Why is the inflation?

Gazdag, László

Keywords: money stability, evenness of money supply, macro-structures, crisis periods

According to M Friedman crises are generated by the violation of even money supply as any fluctuations induced in the monetary sphere spreads to the real world causing (crisis) cycles. Friedman has proven the falsehood of the Phillips-curve, which he refuted in his “natural rate” hypothesis. There is no connection between unemployment and inflation. Apart from the evenness of money supply, monetarist place money stability to above all, because of the harmful effects of inflation on the economic macrostructure.

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