“Inflation is always and everywhere a monetary phenomenon.”
What this quote means
Economist Milton Friedman's formula encapsulates a theory: inflation results above all from an increase in the money supply. It goes beyond simplistic explanations (wages, prices) and points to central bank policy. Understanding this means realizing that inflation is not an accident but a consequence of decisions. An invitation to enlighten economic debates with rigor, and not to be blinded by appearances.
How to apply it daily
In a discussion about inflation, try to understand the role of monetary policy rather than stopping at price increases.
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