In the monetarist view, the economy is inherently stable, but the mismanagement of monetary policy
creates instability.

Question

Quizplus · Accepted Answer

Monetarists believe that the economy is inherently stable, but that instability can arise from mismanagement of monetary policy, such as excessive money supply growth or contraction. Monetarists argue that stable money growth is the key to maintaining low inflation and promoting long-term economic growth.

In the Monetarist View, the Economy Is Inherently Stable, but the Mismanagement