In this article we will discuss about the classical, Keynesian and modern views on monetary policy. The Classical View on Monetary Policy: Money, according to the classicists, is a veil. It is neutral in its effects on the economy. It simply affects the price level, but nothing else. An increase in the money supply leads […]
Classical, Keynesian and Modern Views on Monetary Policy
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Classical and Keynesian Views on Money
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In this article we will discuss about the classical and Keynesian views on money. The Classical View on Money: In the classical system, money is neutral in its effects on the economy. It plays no role in the determination of employment, income and output. Rather, they are determined by labour, capital stock, state of technology, […]