• rmacculloch

Don't bother to read the mainstream media for economic commentary

Newshub has "explained" to millions of Kiwis today the following:

"The first thing to understand is what is actually causing inflation. While it's hard to pinpoint exactly what's to blame, NZ has been facing a perfect storm of inflationary pressures over the past year. Including pent-up demand post lockdowns, labour shortages, increased manufacturing costs, supply chain issues from the pandemic & an influx of Government financial support".

Well, the author obviously thinks Nobel Laureate Milton Friedman's line that Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output” is a load of rubbish, since nowhere in the above paragraph on the causes of inflation does the Reserve Bank even get a mention. Should the mainstream media just give up on trying to do economics?