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My opinion about Friedman[Monetarism]
Keynesian VS Monetarism
Summary of Contents
Keynesian VS Monetarism
Summary of Contents
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ssion. It pressed down hard on the monetary acclerator. But the economy did no feel the effects until after the downturn had passed. The result was high inflation, for the effects came during the recovery. In 1974 the FBR slammed on the monetary brakes to halt inflation. A rescession followed in 1975.
Friedman claims that economists do not know enough about monetary policy to manipulate it wisely. Sometimes it takes six months before monetary policy affects nominal GDP, sometimes to years. Because of these reasons, when inflation appears imminent Friedman will say "Don't Just stand there!"
Friedman claims that economists do not know enough about monetary policy to manipulate it wisely. Sometimes it takes six months before monetary policy affects nominal GDP, sometimes to years. Because of these reasons, when inflation appears imminent Friedman will say "Don't Just stand there!"