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Monetary Policy - Inflation - CuresFurther workIn this section we look at a few other areas of economic theory that you may want to consider when studying the cures of inflation. Keynesian & Monetarist attitudes to monetary policy - different groups of economists have always had different views about how effective monetary policy is. Monetarists argue that monetary policy can be used effectively to control the money supply, but Keynesians reject this. Expectations - economists differ a lot over the assumptions they make about the nature of people's expectations. The views range from the 'rational expectations' school of economists to 'extreme Keynesians'. It is also important to have low and stable price expectations as a key part of a regime of price stability. |
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