5min chapter

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Are We Headed Towards a Monetary Breakdown? | Jeff Snider

Hidden Forces

CHAPTER

Is There a Supply Shock Driving Consumer Price Inflation?

I don't know that anyone really understands what or can sort of confidently forecast inflation. Inflation is always and everywhere a monetary phenomenon. Milton Friedman said it, central bankers believe it. Nobody talks about the Eurodollar expansion in the 1970s because there was an excess of money. But again, it's a very simple thing: If we see excessive money creation, then we should see inflation. The question is how long is this transitory being up to end?

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