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