Currency in Circulation (CURRCIR) under Arthur F. Burns rose at a compound annual growth rate (CAGR) of 8.64% from Feb 1970 to March 1978. The Consumer Price Index (CPIAUCSL) rose at a compound annual growth rate of 6.49%.
After four years of Jerome Powell, Feb 2018 to Feb 2022, Currency in Circulation rose at a similar 8.41% CAGR but the CPI only at 3.31% CAGR, almost 50% less than under Burns.
Milton Friedman famously said, “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.”
Something is rotten in CPI Denmark.
