Which of the following is NOT a monetarist proposition?
A)monetary policy is better conducted by a rule than by discretion
B)monetary policy affects the economy with long and variable lags
C)the Fed should undertake a more active monetary policy
D)the private sector is inherently stable
E)to conduct monetary policy, money targets are generally better than interest rate targets

Question

Quizplus · Accepted Answer

Monetarists, such as Milton Friedman, argue for a more controlled approach to monetary policy, favoring rules over discretion and generally advocating for minimal intervention in the economy. They believe in the stability of the private sector and suggest that monetary policy impacts the economy with long and variable lags. Therefore, suggesting the Fed should undertake a more active monetary policy contrasts with the typical monetarist view that advocates for a steady, predictable expansion of the money supply.

Which of the Following Is NOT a Monetarist Proposition