Free To Choose 1980 - Vol. 09 How to Cure Inflation Friedman explains inflation, monetary policy, and the long-term effects of rising prices on economic stability and purchasing power. The episode connects inflation to government spending and money supply growth. Video
Inflation Inflation is the general increase in prices over time, which reduces the purchasing power of money. When inflation rises, the same amount of money buys fewer goods and services than before. Economists debate the causes of inflation, but many agree that rapid inflation can make budgeting, saving, and long-term planning more difficult.