Milton Friedman's k-percent rule says to set the rate of growth of the quantity of money equal to

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Milton Friedman's k-percent rule suggests that the rate of growth of the quantity of money should be set at a constant rate of k percent, regardless of economic conditions such as the unemployment rate, potential GDP, growth rate of real GDP, or real interest rate. This is because Friedman believed that fluctuations in the money supply can lead to economic instability, and a constant growth rate would provide a stable monetary environment for businesses and individuals to make economic decisions.

Milton Friedman's K-Percent Rule Says to Set the Rate of Growth