Kevin Warsh and the Return of Monetarism
Kevin Warsh advocates for monetarism, a theory rooted in the ideas of Milton Friedman. He emphasizes that inflation is primarily driven by excessive monetary expansion and suggests that reducing the money supply is essential for controlling inflation. Warsh's views reflect a significant economic perspective that prioritizes monetary policy in managing price stability.
- ▪Kevin Warsh is a proponent of monetarism, influenced by economist Milton Friedman.
- ▪Friedman famously stated that inflation is always a monetary phenomenon.
- ▪Warsh argues that to reduce inflation, the money supply must be decreased.
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Warsh has described himself as a student of Milton Friedman, the famed economist who said in 1963 that “inflation is always and everywhere a monetary phenomenon.” Those words capture the main tenet of monetarism: Sustained price inflation is always caused by excessive monetary expansion. For inflation to come down, less money needs to be circulating in the economy. Read Full Article ⟶
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