Milton Friedman

EconTalk · Milton Friedman on Money

• When Are We Going to See the Next Major Inflation

  Governments want to spend money without taxing it, and the only way to do it, according to Milton Friedman, is by printing money, which causes inflation.

  Sooner or later the government will want more money, and in a world where people don't except a major inflation, is exactly the place where you can successfully have one.

  ▶ at 19:36 Share Transcript

• When Did New Zealand Start Targeting Inflation?

  It started in New Zealand in 1980s, when going through a rough economic period, they did an extremely successful experiment and managed to control country's inflation to ~3%

  ▶ at 15:42 Share Transcript

• How Is Interest Rate Used to Control the Value of Money

  According to Milton Freedman, the Central Bank uses short-term interest to control the value of money by controlling how much trading of securities and bonds can happen on the open market.

  ▶ at 10:11 Share Transcript