According to monetarists, discretionary monetary policy has been a major source of economic
instability.

Question

Quizplus · Accepted Answer

Monetarists believe that discretionary monetary policy, which involves central banks making policy decisions based on their judgment of the economy, can create uncertainty and unpredictability in the markets, leading to economic instability. They argue that a more predictable and rule-based approach, such as targeting a specific level of money supply growth, would lead to more stable economic growth.

According to Monetarists, Discretionary Monetary Policy Has Been a Major