Which group of economists disagrees with discretionary monetary policy in favour of a monetary rule that prescribes a slow increase in the money supply?
A) Keynesians
B) monetarists
C) supply-side economists
D) classical economists

Question

Quizplus · Accepted Answer

Monetarists believe that a slow and steady increase in the money supply helps to maintain stable economic growth and counteract inflationary pressures. They argue that discretionary monetary policy, which relies on the judgement of policymakers, can lead to unpredictable and potentially harmful outcomes. Keynesians, on the other hand, tend to support discretionary monetary policy as a tool for managing economic cycles and promoting full employment. Supply-side economists and classical economists may have varying views on monetary policy, but they do not necessarily prioritize a specific rule for increasing the money supply.

Which Group of Economists Disagrees with Discretionary Monetary Policy in Favour