Asked by Lee

The Fed should simply increase the money supply at the same rate that the full employment economy grows, and the government should desist from any stabilizing urges." What school of thought would make this suggestion, and how do economists of that school justify that prescription?

Answered by economyst
Do a little research, then take a shot. what do you think.

Hint. Be sure to read up on Monetarists, and the quantity theory of money.
Answered by tom
"The Fed should simply increase the money supply at the same rate that the full employment economy grows, and the government should desist from any stabilizing urges." What school of thought would make this suggestion, and how do economists of that school justify that prescription?
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