Answer to Question #258404 in Macroeconomics for Zee

Question

Does the Keynesian view of the short-run Phillips curve differ from the Monetarist view ?

Answer 1

Monetarists puts emphasis supply side of the economy while the Keynesians are opined that demand deficient unemployment could persist in the long-term. Monetarists economics deal money control in the economy. On the other hand, Keynesians involves government expenditures. Monetarists believe in controlling the supply of money that flows into the economy while allowing the rest of the market to fix itself.