John Kenneth Galbraith attacked the "illusion" of this action in one chapter of The Affluent Society.
John Kenneth Galbraith attacked the "illusion" of this action in one chapter of The Affluent Society.Thomas Sargent showed that, assuming rational expectations, this type of action would be ineffective.Milton Friedman favored a "rules-based" approach to this, and also argued that this approach wasresponsible for the severity of the Great Depression in a book written with Anna Schwartz. In a liquiditytrap, the conventional type of this action may be ineffective as the nominal interest rate can't go under zero.For 10 points, name this type of action intended to maximize employment and stabilize inflation, practicedby the Federal Reserve and contrasted with fiscal policy.
John Kenneth Galbraith attacked the "illusion" of this action in one chapter of The Affluent Society.
monetary policy [accept answers like changing interest rates; prompt on things like Federal Reserve policy or government policy; do not accept or prompt on "fiscal policy" or "Congressional policy"; accept answers such as deflationary monetary policy or contractionary monetary policy in light of the Friedman clue]