When there is an economic downturn, this economic theory argues that the proper thing for government to do is to have a steady, predictable increase in the money supply at a rate about equal to growth in the economy's productivity.

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This is the basic principle of Monetarist economics, which advocates for a steady increase in the money supply at a rate equal to the growth in the economy's productivity to combat a recession. Keynesian economics, on the other hand, suggests that the government should increase spending during a downturn to stimulate demand and job creation. Economic planning typically involves a more centralized approach to managing the economy. Supply-side economics focuses on lowering taxes and reducing regulations to encourage economic growth. Credit-based economics is not a recognized economic theory.

When There Is an Economic Downturn, This Economic Theory Argues