AIA September 2024

Structural Inflation "Back to the Future"

Commentary

Back to the Future

Like many Americans, I remember the high inflation rates in the 1970s and early 1980s. The inflation rate peaked in March 1980 at 14.73%. This was not a one-off event but the culmination of a couple of decades of overspending, money printing, and deficits.

As Nobel Prize-winning economist Milton Friedman said, “Inflation is everywhere and always a monetary phenomenon.”