the supporters of a monetary growth rule believe that active monetary policy

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Active monetary policy grants policy makers the flexibility and discretion to act when inflation exceeds expected levels or if the course of economic activity expands or contracts at greater levels than anticipated.

The supporters of a monetary growth rule believe that active monetary policy .

One monetarist policy conclusion is the rejection of fiscal policy in favour of a “monetary rule.” In A Monetary History of the United States 1867–1960 (1963), Friedman, in collaboration with Anna J. Schwartz , presented a thorough analysis of the U.S. money supply from the end of the Civil War to 1960.

Many nations, including the United States, follow an active monetary policy in which a committee of central bankers reviews current economic conditions, assesses the economy’s future course and responds with what committee members consider the appropriate policy actions.

Policy rules, at least in a general way, presume some understanding of … ? Passive monetary policy, by contrast, involves a set of rules that dictate monetary policy actions.

Most of the pressure for a monetary growth rule has disappeared because since 1980

Keynesian economics is a theory that says the government should increase demand to boost growth.