Explain why stability of the demand for money is so important to those advocating a constant growth

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Explain why stability of the demand for money is so important to those advocating a constant growth rate rule for the money supply. What happens to the argument in favor of this rule if money demand is unstable?

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Question Posted: Dec 09, 2015 03:22 AM

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Explain why stability of the demand for money is so important to those advocating a constant growth

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If the demand for money is stable then the velocity of money grows at a steady and predictabl...View the full answer

Macroeconomics

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