Nobel prize-winning economist Milton Friedman once had the following statement: "In- flation is always and everywhere a monetary phenomenon." Another Nobel prize-winning economist, Tom Sargent, had the following statement: “Persistent high inflation is always and everywhere a fiscal phenomenon." Are the two statements inconsistent with each other? Explain.
Nobel prize-winning economist Milton Friedman once had the following statement: "In- flation is always and everywhere a monetary phenomenon." Another Nobel prize-winning economist, Tom Sargent, had the following statement: “Persistent high inflation is always and everywhere a fiscal phenomenon." Are the two statements inconsistent with each other? Explain.
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 19SQ
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