Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” - Milton Friedman
Many feel that inflation is price increase. At the same time, the belief is that central bank reserves are used to "print money". The problem is that reserves that are created on the bank of balance sheets is part of the monetary base, not money supply.
In this video I discuss why so many get inflation wrong and why these claims are repeatedly wrong.
▶️ 3Speak
