Proponents of the monetary growth rule believe that a constant growth rate in the money supply will lead to less uncertainty and greater credibility than with activist policies.

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Proponents of the monetary growth rule argue that a constant rate of growth in the money supply would provide greater predictability and credibility in monetary policy, as it would reduce uncertainty and eliminate the need for policymakers to make discretionary decisions based on constantly changing economic conditions.

Proponents of the Monetary Growth Rule Believe That a Constant