Money Growth Rule
Essay specific features


Written by:
Johnny G
Date added:
July 4, 2013
Level:
University
Grade:
A
No of pages / words:
3 / 765
Was viewed:
360 times
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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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