Monetarists believe that the type of monetary policy that would lead to greater economic stability is

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Monetarists believe that a constant rate of growth in the money supply would lead to greater economic stability. This is known as a "money supply rule," which sets a specific target for the growth rate of the money supply. This would help to control inflation and stabilize the economy in the long run. Counter-cyclical policies (such as raising interest rates during a boom and lowering them during a recession) are also sometimes advocated by monetarists, but the emphasis is on keeping the money supply growth rate stable. Pro-cyclical policies (such as increasing the money supply during a boom and reducing it during a recession) are generally seen as destabilizing and not recommended by monetarists.

Monetarists Believe That the Type of Monetary Policy That Would