Milton Friedman and the critique of quantitative easing

The concept of quantitative easing (QE) involves central banks increasing the money supply to stimulate the economy, a practice that has intensified significantly over the last fifteen years. While often viewed as a tool to alleviate poverty, critics argue that creating money without creating corresponding wealth merely shifts value and can lead to rising prices.

Milton Friedman and the Chicago School of Economics challenged the prevailing Keynesian orthodoxy of the post-World War II era. While Keynesianism suggested that the state should manage the economy through spending and taxation, Friedman and his colleagues advocated for the efficiency of markets. The Chicago School, which produced numerous Nobel laureates, emphasized that inflation is primarily a monetary phenomenon rather than a result of labor unions or corporate greed.