Mill:
> There are writers of pretension, not only out of Bedlam, but even, we can 
> assure Sir Robert Peel, out of Birmingham, who think it the duty of the 
> legislature periodically to degrade the standard (or to authorize an increase 
> of inconvertible paper exactly equivalent) in proportion as the progress of 
> industry creates an increase of productions and a multiplication of pecuniary 
> transactions.<

PK's Translation: > there are crazy people who think that the money
supply should grow over time, in line with the long-run growth of real
GDP. By that standard, Milton Friedman was crazy.<

it's true that MF was crazy (perhaps like a fox), but it seems to me
that Mill was talking about the (non-Friedmaniac) view that a little
bit of inflation greases the wheels of industry.
-- 
Jim Devine
"All science would be superfluous if the form of appearance of things
directly coincided with their essence." -- KM
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