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Monetary Policy - , /www.nowandfutures.com/key_stats.html#...

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To complete this activity, you will first need to access these web sites and research historical inflation rates and  money growth data at -  http://www.nowandfutures.com/key_stats.html#ell  and historical CPI data at -  http://www.bls.gov/cpi/ Review and compare the trends in money supplies/ aggregates to the trend in the CPI over several  decades.  State your opinion about the validity of Monetarism (Friedman's famous quote that inflation is  everywhere and always a monetary phenomenon).  Prior to World War II, the world operated under a unified gold standard, and international trade was paid in gold. Whenever a nation ran up a huge trade deficit, it paid its bill out of its gold reserves, causing a reduction in its domestic money supply. This in turn caused the depressions that wracked so many national economies. Friedman argued that if the money supply were
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