Review and compare the trends in money supplies/ aggregates to the trend in the CPI over several decades.

To complete this activity, you will first need to access the following web sites and research historical inflation rates and money growth data:

http://www.nowandfutures.com/key_stats.html#ell

http://www.bls.gov/cpi/

• Review and compare the trends in money supplies/ aggregates to the trend in the CPI over several decades.
• State your opinion about the validity of Monetarism (Friedman’s famous quote that inflation is everywhere and always a monetary phenomenon).
• Has Monetarism been an effective tool for conducting monetary policy?
• What role does monetarism have in current monetary policy?