C Some people will argue against using either monetary or fi

C. Some people will argue against using either monetary or fiscal policy, instead supporting a laissez-faire approach to the economy. The well-known economist Milton Friedman, for example, believed in the permanent income hypothesis and was also a monetarist. What monetary policy prescription do monetarists support? (2 points)

Solution

Monetarism relies on the predictability of velocity rather than absolute stability,.

Monetarism is a mixture of theoretical ideas, philosophical beliefs, and policy prescriptions, they are as follows.