Central Banks Forgot What Drives Inflation—Tim Congdon Didn't
Author: Steve H. Hanke
Outlet: The Daily Economy
Date: May 15, 2025
Hanke reviews Tim Congdon's book The Quantity Theory of Money: A New Restatement, calling it a crucial contribution to economic thought. He credits Congdon with correctly attributing the Covid-era inflation surge to the money-supply explosion triggered by central banks' quantitative easing programs at the Federal Reserve, European Central Bank, and Bank of England, in line with Milton Friedman's dictum that inflation is always and everywhere a monetary phenomenon. Hanke argues that Congdon's restatement of the quantity theory offers essential lessons for central banks that have drifted away from monetary analysis in setting policy.
Full Citation:
Hanke, Steve H. "Central Banks Forgot What Drives Inflation—Tim Congdon Didn't" (a book review of Quantity Theory of Money: A New Restatement by Tim Congdon), The Daily Economy, May 15, 2025.