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Money Growth Rule

Essay specific features

 

Issue:

Business

 

Written by:

Johnny G

 

Date added:

July 4, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 765

 

Was viewed:

360 times

 

Rating of current essay:

 
Essay content:

The reasoning is that as the economy experiences changes in relative output, the money supply can have dramatic effects upon the economy. Additionally, by establishing a money growth rule, Friedman believed that this would eliminate the possibility of short-run mismanagement and, in the end, be more beneficial for the economy...
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Establishing a constant growth level in the money supply would eliminate the decision making process of the central banker. The problem with human intervention is the short-sided nature of many of the policies designed to aid the economy. Such interventions, which yields unintended negative consequences, is the result of the time inconsistency problem...
displayed 300 characters

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