Economic Research Institute Study paper
Utah State University
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One of the key controversies in economic theory involves the effects of changes in the money supply on the price level and the economy's output. In this respect, two major opposing views can readily be identified: the monetarist view and the income expenditure view. Monetarists regard money as an independent source of economic disturbance. In their view, the money supply is exogenously determined and changes in it exert no lasting influence on any real economic variables. Keynesians, on the other hand, assert that under the conditions of unemployment, changes in the money supply may lead to permanent changes in real variables.
Biswas, Basudeb and Saunders, Peter J., "An Empirical Note on the Effects of Monetary Changes on the Price Level and Real Output" (1985). Economic Research Institute Study Papers. Paper 421.