Question

Milton Friedman argued that: appropriate antitrust policy can prevent businesses from causing inflation. inflation is a phenomenon of capitalist economies. prices need to be regulated and set by the government to prevent inflation. general price level increases result from the government printing too much money.

Answer 1

Answer:

Prices need to be regulated and set by the government to prevent inflation.

Explanation:

Milton Friedman was a monetarist. Monetarists believe in the quantity theory of money which states that inflation is a direct result of the growth of the amount of money in an economy. One of the most famous quotes by Friedman is "Inflation is always, and everywhere, a monetary phenomenon".

Under this reasoning, Friedman proposed that the government should control the money supply in order to address and maintain a stable price level, in other words, low inflation.

Friedman policies were implemented in the U.S. since the late 1970s, and emulated in most other countries in the world. Ever since, the monetary policy of most countries in the world has been aimed at controlling inflation and keeping it low.