Monetarists - Virtual Economy Policies

Now why not try out some of these policies on the Virtual Economy to see how effective they are? As we have seen, the Monetarists advocate strict control of inflation. Everything else should then follow from there. In the long-term supply side policies should help to reduce imperfections in markets and therefore reduce unemployment.

Try the following on the model :

• Use interest rates to control inflation
• Try some supply-side policies - change the minimum wage, reduce taxes to improve incentives etc...

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