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Q: What do monetarists such as Milton Friedman believe the fed should do each year?
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What policies would likely be favored by a monetarist?

A monetarists would favor a policy where the government had a limited role in the control of the circulation of money. They believe that the money supply should not be excessively expanded so it does not cause inflation.


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What is the main idea in monetarism?

Monetarists believe that changes in the money supply affect the level of production in a country in the short-run but only affect the price-level in the long run. One key outcome of monetarist thought is about the optimal level of interest rates and thus real money supply: social welfare is maximised when interest rates are equal to 0 and at the level of real money supply which provides this rate. In general, this means two things: 1) that inflation is the result of money supply changes; 2) that inflation has welfare losses due to reallocation of assets. Monetarists believe the government purposely uses the money supply to create inflation to provide some level of revenue for itself, since inflation created by printing money is known as an 'inflation tax' and provides the government with money whose cost is borne by the public. Monetarists believe that the government should not interfere in monetary policy and that they should keep the money supply constant such that the interest remains 0 in the long-run, thus minimising welfare loss.


What yearly inflation rate do monetarists argue ensures an adequate money supply for a healthy economy?

An inflation rate of from 1-3% should ensure an adequate money supply for a healthy economy.


Should the word rabbi be capitalized?

No, unless you are using it as part of a title like a story called "The Rabbi and the Bear", or in a persons name like Rabbi John Friedman.


How many miles from Milton Keynes to Ely?

Milton Keynes to Ely in the UK is 61 miles. It should take approx. 1 hour 30 minutes to drive. Longer if you stop for a break or to refuel on route.


How far from Sutton Surrey to Milton Keynes?

Sutton to Milton Keynes in the UK is 82 miles. It should take approx. 1 hour 40 minutes to drive. Longer if you stop for a break or to refuel on route.


Should you believe that it took 20 years to built the pyramid?

yes we should believe it.


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Depends on who you pray to. If you believe to GOD, then you should pray to him. If you don't believe GOD and believe to who ever, the do the same. Easy.


Who are people that believe there should be no government?

Those who believe the government should be abolished are known as anarchists