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Essay

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

General issues of this essay:
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