'Friedman vs. Keynes on inflation?' #moneywiseminutiae

"Milton Friedman" believed inflation is mostly caused by too much money in the economy. He thought central banks should control the amount of money carefully to keep prices stable.
"John Maynard Keynes", on the other hand, thought inflation could also happen when people don't spend enough. He suggested the government should step in, spending more in tough times and less when inflation is high, to balance the economy.
In simple terms, "Friedman" liked controlling money, while "Keynes" preferred the government adjusting its spending to manage inflation.

#keynes
#miltonfriedman
#monetarypolicy
#centralbanks
#federalreserve
#rbi
#reservebankofindia
#economics
#finanace
#inflation
#recession
#moneywise

[GamerGeekThug]

This isnt true. Keynes believed that inflation was caused by the aggregate demand of goods and services being too high. When inflation occurs, Keynes believed the government should tax more and spend less to lower aggregate demand. He only thought the government should increase its spending when aggregate demand was too low during a recession. He never said that inflation was caused by people spending too much. In fact, during the great depression, when inflation was very low, he told people to spend more money to stimulate the economy.

Keynes believed in the opposite of what this video says he believed in.

[harrie]

Both are correct but I go with Milton Friedman coz he is very right in current scenario

[saranggharde]

Both are right in their 'contexts', Keyenes was tasked with bringing economies on track after ravages of war where hyperinflation was not so uncommon. Friedman was post war economist who was concerned with keeping economies on track which were running normal albiet with little bumps of inflation.

[neoconnor]

Pretty sure you almost have it backwards.

[MoneyWiseMinutiae]

"Friedman" liked controlling money, while "Keynes" preferred the government adjusting its spending to manage inflation"

[cspike]

keynes wasn't even an economist. so let's take his advice...