According to monetarists, the Fed should use __________ in the conduct of monetary policy to reduce fluctuations in the economy.

Question

Quizplus · Accepted Answer

Monetarists recommend that the Fed use specific rules, such as targeting a fixed rate of growth of the money supply, to guide their conduct of monetary policy. This approach is aimed at reducing fluctuations in the economy by providing clear expectations for investors and minimizing the potential for discretionary decisions that could lead to unpredictability.

According to Monetarists, the Fed Should Use __________ in the Conduct