Monetarists think changing the money supply impacts economic units directly rather than just through interest rates.

Question

Quizplus · Accepted Answer

Monetarists, following the theories of Milton Friedman, believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods, and that the objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary monetary policy. This view holds that changes in the money supply directly affect economic activities beyond just influencing interest rates.

Monetarists Think Changing the Money Supply Impacts Economic Units Directly