When Friedman says “inflation is always and everywhere a moral phenomenon,” he’s pointing out that inflation isn’t just an economic or technical issue (like bad luck or miscalculation) — it’s the result of deliberate choices made by people in power. Specifically, it happens when governments, through their central banks, create too much money relative to the amount of goods and services in the economy.

At its core, inflation reflects a breach of trust. Governments and monetary authorities promise that the money they issue will hold its value. When they inflate the money supply (often to cover deficits or finance spending without raising taxes), they break that implicit promise. In Friedman’s view, that’s a moral failure — a violation of honesty, responsibility, and stewardship.

In short:

Inflation happens because of human decisions, not random forces.
It reflects choices that often prioritize short-term gain over long-term stability.
Those choices betray trust and harm people, especially the poor and those on fixed incomes.