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53
What is the main criticism to the Monetarist point of view? What is the Monetarist response?
Criticism: The ratio of money to GDP is low, but why is it increasing? Money supply is decreasing slower than GDP, so there should be enough money to support the level of output.
Response: There was money, it just wasn't circulating. Money supply figures can't account for this.
Response: There was money, it just wasn't circulating. Money supply figures can't account for this.
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 11.12.2010