How to Cure Inflation

How to Cure Inflation

Think and Act Locally

This YouTube video transcript features Milton Friedman discussing inflation and its cure. Friedman uses historical examples, including the use of tobacco as currency in colonial America and Germany’s post-WWII economic recovery, to illustrate how excessive money growth causes inflation. He argues that controlling the money supply is the only effective cure, a point debated by fellow economists and a congressman in a panel discussion. The panel grapples with the political challenges of implementing this solution, highlighting the difficulty of maintaining consistent anti-inflationary policies due to public and political pressures. Ultimately, the discussion centers on the necessity of curbing government spending and the public’s need to understand the long-term consequences of inflation.

Activity

Switch to the Fountain App

Think and Act Locally • How to Cure Inflation • Listen on Fountain