#081 Professor Steve Hanke Sees Decline In Inflation, Recession On The Way
The Julia La Roche Show
00:00
The Fed Doesn't Pay Attention to the Quantity Theory of Money
Milton Friedman was a wonderful guy to have as a associate, truly say. And then on the point about why do you think the Fed doesn't pay attention to the quantity theory of money. Well, I think there's one theoretical reason really and that is that the models that they use are what are called post Keynesian models and they don't include money. Now the monetarist model, of course, does include money. So instead of squeezing, they should be allowing that money supply to increase and grow by more or less 6% per year.
Transcript
Play full episode
