Two headlines got my attention yesterday. One said:
Bangko Sentral sees May inflation at 8.8-9.6%
The other said:
March money supply up 9.6% on year
Coincidence?
Milton Friedman (the Nobel prize winning economist) is famous for saying that “Inflation is always and everywhere a monetary phenomenon. To control inflation, you need to control the money supply.” To learn more, listen to this podcast of Mr. Friedman.