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Milton Friedman on Inflation and Money Supply

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Published on Apr 4, 2012

This clip was taken from the "How to Cure Inflation" episode of the original Free To Choose TV series.

Inflation results when the amount of money printed or coined increases faster than the creation of new goods and services. Money is a "token" of the wealth of a nation. If more tokens are created than new wealth, it takes more tokens to buy the same goods. Friedman explains why politicians like inflation, and why wage and price controls are not solutions to the problem. Friedman visits Japan, U.S. and Britain.

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