In the 1970s the Bank of Canada switched to monetarist money-supply targeting.
The higher-than-expected inflation of the late-1980s was one reason the bank switched to inflation targeting.
The ratio of household net worth-to-GDP has risen over time.
Only surprises have real effects, Friedman argued, but their effects last only until people realize what’s going on.
In countries whose currencies have risen against the U.S. dollar, there’s “flow-through deflation” as imports get cheaper.