Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

Exercise 9

Table 22-5 shows the growth rate of M 2, the rate of inflation, and the rate of growth in output for the United States in decade averages, starting with the 1870s. Discuss the extent to which money growth, adjusted for output growth, helps explain inflation in recent U.S. history.