Considering the Figure 5-12, from 2017 to 2019, the money growth has increased from round 8% to around 11% while the interest rate was almost constant. Why do you think the "liquidity effect" does not hold for the above period? How does Milton Friedman criticize the "liquidity effect"?

Figure 5-12 Interest Rate Money Growth Rate (6) (% annual rate) 25 25 20 20 15 Money Growth Rate (M2) 10 10 5 5 Interest Rate 0 O 1968 -5 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 Money Growth (M2, Annual Rate) and Interest Rates (Three-Month Treasury Bills), 1968-2017 When the rate of money supply growth began to climb in the mid-1960s, interest rates rose, indicating that the liquidity effect was dominated by the price-level, income, and expected-inflation effects. By the early 1980s, both interest rates and money growth reached levels unprecedented in the post-World War II period. Sources: Data from Statistics Canada CANSIM series V122531 and V41552796