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Monetarism is just a theory of the transmission mechanism going from money supply->price level->output, with some variations. Their policy proposals have been q
by vezzy-fnord 11y ago
Monetarism is just a theory of the transmission mechanism going from money supply->price level->output, with some variations. Their policy proposals have been quite diverse.
Keynes himself had differing policy recommendations, as well, but ultimately settled on what he called "socialization of investment" where the state would fill in certain entrepreneurial activities that the private sector is deemed to be lacking, though the specifics were elusive. Contracyclical fiscal policy was actually popularized by Alvin Hansen IIRC, and the more extreme functional finance favored by Post-Keynesians was formulated by Abba P. Lerner.