Economist's View: Money and InflationGetting ready for class tomorrow and was reminded of this graph from Mishkin's text: The graph shows two things. First, it shows the long lag between changes in the money supply and changes in the inflation rate. There is a close association between inflation and the growth rate in M1 two years earlier. When the supply shocks of the 1970s are accounted for, the association is even closer. Second,
