Milton Friedman's assertion that "inflation is a monetary phenomenon" is based on:

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Milton Friedman's assertion that "inflation is a monetary phenomenon" is based on the quantity theory of money, which states that inflation is directly related to the supply of money in an economy. In other words, an increase in the money supply will lead to inflation, and a decrease in the money supply will lead to deflation. The other options, such as constant nominal GDP growth, the assumption that the price level grows at the same rate as real GDP, or the assumption of a constant rate of money supply growth, are not central to Friedman's argument.

Milton Friedman's Assertion That "Inflation Is a Monetary Phenomenon" Is