Explain this paragraph? Monetarist Economics favors the money supply and its sway on inflation and economic stability.
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Monetarist Economics favors the money supply and its sway on inflation and economic stability. They theorize adjustments to the money supply can help interest rates and ultimately aggregate demand and inflation. Their belief is for the central bank to turn their focus on the money supply to continue price stability. Keynesians advocate for the Philips Curve, or short-run-trade-off between inflation and unemployment. They are in favor of expansionary monetary and fiscal policies to bring down unemployment, with the sacrifice of escalated inflation. Monetarist Economics favors the money supply and its sway on inflation and economic stability. They theorize adjustments to the money supply can help interest rates and ultimately aggregate demand and inflation. Their belief is for the central bank to turn their focus on the money supply to continue price stability. Keynesians advocate for the Philips Curve, or short-run-trade-off between inflation and unemployment. They are in favor of expansionary monetary and fiscal policies to bring down unemployment, with the sacrifice of escalated inflation.
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The paragraph discusses two prominent schools of economic thought Monetarism and Keynesianism Moneta... View the full answer
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