State your opinion about the validity of Monetarism (Friedman’s famous quote that inflation is everywhere and always a monetary phenomenon).

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?

Your posts must be substantive and must comment on, question, or challenge your classmates’ thoughts.

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