Document Type

Article

Journal/Book Title/Conference

Economic Research Institute Study paper

Publisher

Utah State University

Publication Date

4-1-1985

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

19

Abstract

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.

Share

COinS