> For the complete documentation index, see [llms.txt](https://btcjourney.gitbook.io/start/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://btcjourney.gitbook.io/start/trust-problems-with-our-money/central-banks-money-supply-and-currency-debasement/milton-friedman-on-inflation.md).

# Milton Friedman on inflation

In this snippet, the Nobel Prize winning economist Milton Friedman lays out how monetary policy caused and broke high inflation in Japan in the 70s.

| Creator         | Time | URL                                                        |
| --------------- | ---- | ---------------------------------------------------------- |
| Milton Friedman | 2min | [Full source](https://www.youtube.com/watch?v=u6GWm0GW7gk) |

{% embed url="<https://www.youtube.com/embed/u6GWm0GW7gk?start-0>" %}

{% hint style="info" %}
**Takeaway** Inflation as a result of the growth of the money supply tends to lag as the new money spreads through the economy. So does the reduction of the money supply not immediately lead to corrections in inflation.
{% endhint %}