Showing posts with label Printing vs. Spending. Show all posts
Showing posts with label Printing vs. Spending. Show all posts

Monday, November 16, 2009

Milton Friedman's Mischief

On the left is a scan of one of the graphs from Milton Friedman's book Money Mischief; on the right is a tweak of that scan.  [Regarding the tweak...]

For the figure on the left, I moved the "Figure 3" label to the bottom and reduced the size of the text below the "Figure 3". Otherwise this figure is not retouched.

In the figure on the right, I moved the label, reduced the text, and shifted the "money" line up so that the two lines start at the same level. That makes it easier to compare the trends. And I erased the Y-Axis labels because shifting the trend line makes those labels incorrect. (These tweaks were all done in Paint.)




The tweak shows that money increased more quickly than prices. Funny -- that's not what you might expect. If printing money causes inflation, the two lines should travel together. They don't.