The Economist, (2013), “Generations: On the meaning of inflation”, Free Exchange Economics Blog, 11 Σεπτεμβρίου.
Inflation, like demand itself, is always and everywhere a monetary phenomenon. Milton Friedman was right about that. But while that’s a useful thing to know it’s not always the answer to the question we’re really asking about macroeconomic troubles. If you ask what America’s main macroeconomic problem is at the moment, one correct answer is that it’s suffering from a demand shortfall associated with inadequately expansionary monetary policy. But that doesn’t really tell you what you need to know, which is why monetary policy is insufficiently expansionary. Is it an intellectual failure? An institutional or technical problem?