what do monetarists think of unemployment?
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Monetary theory watch
- Thread Starter
- 21-02-2018 20:29
- 22-02-2018 16:31
Monetary policy uses the control of money supply by means of interest rates to limit inflation but at the same time sustain the economic growth to prevent unemployment from rising.
The trade off between inflation and unemployment can be illustrated in the Philip curve. Most recent monetarists use augmented curve to match with natural rate of unemployment to minimize the effect from fluctuations during economic cycle.