Money Growth Rule
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Title: Money Growth Rule

Essay Details:

Subject: Business
Author: Winston B
Date: January 12, 2015
Level: University
Grade: A
Length: 3 / 765

Essay text:

The reasoning is that as the economy experiences changes in relative output, the money supply can have dramatic effects upon the economy. Additionally, by establishing a money growth rule, Friedman believed that this would eliminate the possibility of short-run mismanagement and, in the end, be more beneficial for the economy. The problem with balancing an economy is that human judgment and evaluation of economic situations enter into the equation. Establishing a constant growth level in the money supply would eliminate the decision making process of the central banker. The problem with human intervention is the short-sided nature of many of the policies designed to aid the economy...

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