👉 Say's Law, named after economist Frank Knight and later popularized by Milton Friedman, is a foundational principle in Austrian economics that asserts that nominal money supply growth is the primary driver of economic activity and price changes. According to Say's Law, in a market economy, supply creates its own demand (the "supply-side" view), meaning that when producers supply goods and services, they generate enough demand through their transactions. This contrasts with Keynesian economics, which posits that aggregate demand is the main driver of economic fluctuations. Say's Law emphasizes the importance of individual choice and voluntary exchange, suggesting that economic cycles are primarily a result of misallocations of resources due to changes in the money supply rather than inherent market inefficiencies.
