What is monetarism, Microeconomics

Q. What is Monetarism?

Monetarism:Monetarism was a right-wing economic theory (associated with work of Milton Friedman, in particular) which believed that inflation could be controlled or eliminated by strictly controlling, over long periods of time, growth of the total supply of money in the economy. This theory was proven wrong in 1980s (when it became clear that it is impossible, in a modern financial system, to control supply of money). More broadly, monetarism believes that inflation is a major danger to economic performance and must be controlled through disciplined policies; modern ‘quasi-monetarists' agree with this view, however now use high interest rates (instead of monetary targeting) to indirectly regulate the money supply.

Posted Date: 8/26/2013 3:22:34 AM | Location : United States

Related Discussions:- What is monetarism, Assignment Help, Ask Question on What is monetarism, Get Answer, Expert's Help, What is monetarism Discussions

Write discussion on What is monetarism
Your posts are moderated
Related Questions
which is the following is an example of a firm''s derived demand?

risk describe,prefrence towards risk,the demand for risky assets.consumer behaviour under asymmetricinformation

Ways in which the markets fail and discuss why government intervention is justified and whether government intervention works or not.

Relatiön between TC ,TFC and TVC

Policy Orientation for Private Sector Investment The policy perspective in the matter of funding is undergoing a steady transformation aimed at according an increasing role to

Mg(OH)2 + 2HCl-----> MgCl2 +2H2O how many grams of magnesium chloride can be produced from 14.60mL of a 0.546M hydrogen chloride solution?

when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.

why mrts should convex to origin

Economic instruments Financial rewards, incentives and penalties that operate automatically via market forces, to encourage beneficial behavior.

Regardless of the market structure, oligopolist and the monopolist maximize their TR when MR=0. Do you agree?