Trying to document a very small piece of learning from my challenge to @dkernohan for our new-
non-existent-but-hopefully-will-be-created-soonUPDATE: EXISTing make-a-wish-MOOC #econoMOOC.
“price deflation can be fought by dropping money out of a helicopter” Friedman, M.
money photo cc licensed ( BY ) flickr photo shared by AMagill and Helicopter from Apocalypse Now
Friedman was the main proponent of the monetarist school of economics. He maintained that there is a close and stable association between price inflation and the money supply, mainly that price inflation should be regulated with monetary deflation and price deflation with monetary inflation. He famously quipped that price deflation can be fought by “dropping money out of a helicopter.
There were so many concepts to deconstruct that I got a bit mired. In particular, I remember our dear Canadian prime minister (before he was prime minister) giving a speech saying something to the effect of:
“Canada is a Northern European welfare state in the worst sense of the term, and very proud of it” – Stephen Harper (1997). Council for National Policy. Montreal.
It has been his goal to move us away from this, into a more free market economy which I think means towards a more monetarist economic model.
Now I would like someone from my #econoMOOC to look at this and tell me if I’m on the right track.