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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