Explore BrainMass

Explore BrainMass

    Which school of economic thought rejects fiscal policy?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What school of thought would make this suggestion, and how do economists of that school justify that prescription?
    "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."

    © BrainMass Inc. brainmass.com June 4, 2020, 1:44 am ad1c9bdddf

    Solution Preview

    A monetarist would make this suggestion. Monetarists focus on the effect that the money supply has on a country's economy. Excessive growth of ...

    Solution Summary

    Fiscal policy advocates using government spending to stimulate the economy. Which economic school of thought argues that fiscal policy does more harm than good is determined.