Contrary to Friedman, the boom is not just about an increase in the rate of growth of the money supply; it is also about various nonproductive activities that spring up on the back of the expanding money-supply rate of growth. Furthermore, an economic bust is not about a fall in the rate of growth of the money supply; it is about the elimination of various nonproductive activities on account of the decline in the rate of growth of the money supply. FULL ARTICLE
Source link: http://archive.mises.org/8933/can-friedmans-money-rule-stabilize-the-economy/
Can Friedman’s Money Rule Stabilize the Economy?
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