Which statement does NOT describe the Great Moderation consensus among macroeconomists?
A) Monetary policy should play the main role in stabilization policy.
B) The central bank should be independent of politics.
C) Discretionary fiscal policy should be used sparingly.
D) Monetary policy is the only way to get out of the liquidity trap.

Question

Quizplus · Accepted Answer

The Great Moderation consensus among macroeconomists generally did not advocate for monetary policy as the only way to get out of the liquidity trap. This statement is more aligned with the views of proponents of modern monetary theory, who argue that fiscal policy can also be used in such a situation.

Which Statement Does NOT Describe the Great Moderation Consensus Among