Monetarists are often characterized as interventionists


Monetarists are often characterized as interventionists because they believe that the central bank should continuously alter the money supply in order to try to keep the economy at full employment. The long-run Phillips Curve is downward-sloping because of the trade-off between inflation and unemployment 10. If money is “neutral,” it means that changes in the money supply don’t impact real variables like output and employment but only affect nominal variables like the price level.

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Business Economics: Monetarists are often characterized as interventionists
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