Question: Using these references, https://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm , https://www.imf.org/external/pubs/ft/fandd/2014/03/basics.htm , and https://www.richmondfed.org/publications/research/econ_focus/2014/q4/federal_reserve Should the government use monetary and fiscal policy to stabilize the economy, or should it adhere

Using these references, https://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm , https://www.imf.org/external/pubs/ft/fandd/2014/03/basics.htm , and https://www.richmondfed.org/publications/research/econ_focus/2014/q4/federal_reserve


  1. Should the government use monetary and fiscal policy to stabilize the economy, or should it adhere to policy rules and refrain from upsetting the economy? To answer this question, compare the view of Keynesian economics to Monetarist economists.
  2. What would the Classicals have thought about the Fed's handling of the financial crisis? Compare the Classicals' view to the Monetarist view regarding the Fed's handling of the financial crisis.

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Keynesian economics advocates for active government intervention through both monetary and fiscal policy to stabilize the economy particularly during ... View full answer

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