Monetarists typically favor strong policy measures to fight recession.

Question

Quizplus · Accepted Answer

Monetarists believe that the government should not intervene in the economy during a recession and that the economy will automatically correct itself if left alone. They believe that inflation is the result of an increase in the money supply and that controlling the money supply through monetary policy is the best way to stabilize the economy. Therefore, they would not typically favor strong policy measures to fight recession.

Monetarists Typically Favor Strong Policy Measures to Fight Recession