Sunday July 12, 2020

Invested:Central bankers: their cure is worse than the disease

The ‘Hero Central Banker’ was apparently scuppered by the oil price shock, but that was the outcome, not the cause, of the monetary policy’s failure to deliver a sustainable recovery

21st February, 2016

Some 45 years ago, in his paper The Counter-Revolution in Monetary Theory, Milton Friedman observed: “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”

Ever since, the first part of this quote became the dictum of the central bankers’ view of monetary policy.

But not as much the part saying...

Subscribe from just €1 for the first month!

Exclusive offers:

All Digital Access + eReader



Unlimited Access for 1 Month

Then €19.99 a month after the offer period.

Get basic
*New subscribers only
You can cancel any time.



€149 For the 1st Year

Unlimited Access for 1 Year

You can cancel any time.




90 Day Pass

You can cancel any time.

Team Pass

Get a Business Account for you and your team

Related Stories

The way we did business a few months ago may never return – so the opportunity is to make changes that will both aid recovery and set us up well for our new futures

Tom Maguire | 2 months ago

What’s coming up today and what you might have missed

Hannah O’Brien | 6 months ago