From the historic campus of Hillsdale College in Hillsdale, Michigan, where the good, the true, and the beautiful are taught, nurtured, and honored, this is the Radio Free Hillsdale Hour, bringing the activity and education of the college to listeners across the country.

This is a question about whether this inflation that we're experiencing in the last six months, is that inflation due to supply side problems, or is it due to the money supply growing too quickly?

This is your host, Scott Bertram.

And that's Dr. Gary Wolfram, our first guest on today's program.

Dr. Wolfram is William Simon Professor of Economics and Public Policy,

Director of Economics and Professor of Political Economy at Hillsdale College.

We talk in depth with Dr. Wilfrum about the concept of

inflation. What is it? What might we be facing? Dr. Wilfrum, thanks for joining us. Thank you for

having me on. We are excited to have you back to talk about a topic that perhaps people aren't

all that excited about. And that's inflation. And one of the reasons, I'll ask you about this later,

one of the reasons we have to talk about this is because we haven't really experienced this in

quite some time. So let's start from the start. Inflation. What is inflation? What's a simple

definition we can start with when we talk about inflation? Okay. Actually, what inflation is is simply a decline in the value of your money. Whatever the

thing that you're using to as a medium of exchange, to exchange, you know, goods and services

with, that's money. And in the United States, we just look at dollar bills or you can use your

checking accounts, whatever. Those are things that we call money. Now, Milton Friedman said

that inflation is everywhere a monetary phenomenon. That is inflation happens when the supply of money is growing faster than

the quantity of stuff. Now, a lot of you are too young to remember George Carlin, but George

Carlin was a comedian that talked about stuff. Economically, we probably talk about gross domestic

product or basically the amount of goods

and services that are out there.

So if you just sort of think about it, if your supply of money is growing at 5% and the supply

...