The view that the cause of economic stabilization is best served by adherence to a rigid monetary rule is associated with
A) Milton Friedman.
B) new Keynesians.
C) Franco Modigliani.
D) policy activists.
E) eclectic subversives.

Question

Quizplus · Accepted Answer

The view that adherence to a rigid monetary rule is the best way to achieve economic stabilization is associated with Milton Friedman, who was a prominent advocate of monetarism. Monetarism emphasized the importance of controlling the money supply to stabilize the economy, and argued that central banks should aim for a steady growth in the money supply at a predetermined rate. This view contrasts with the policy activism approach, which advocates for discretionary policy interventions by the central bank to stabilize the economy.

The View That the Cause of Economic Stabilization Is Best