Answer to Question #148380 in Microeconomics for Kazi Hossain

Question

According to the group of economists: Freshwaters and NewKeynesians would an expansionist monetary policy be effective in recovering the economy?

Answer 1

It would be effective because monetarist believe in controlling the supply of money that flows in to the economy while allowing the rest to fix itself and hence control the flow of money in economy which in turn helps an economy recover in the instance of an economic crisis