Question

1. The Monetarists are yet another group that has their own ideas about what would be best for the economy.
2. Describe their viewpoint
3. Do you think it could be successful ?
4. Why?

Answer 1

For the smooth flow of economic development of one nation, the policy view of Monetarists is very very important. The Money supply of goods and services are not always poses comfort zone for the economic operations of every country. It may deviate from the original position. On the other side, the country's balance of payments should also be controlled with the level of inflation. So the situation of Money supply and the inflation are need to monitor. Such monitoring purpose are only get active with the help of the policy views shared by the Monetarists. Such views are often helping the policy makers of the Federal Government to take instant action plan during recession period. Own ideas of Expansionary monetary policy to increase in the money supply and the ideas of Contractionary monetary policy to decrease the money supply of controlling the effects of inflation pressure. As per above facts, we can come with conclusive remedy that it will be more successful.

When the policy makers makes the use of views of monetarists on expansionary policy it provides the solution to issues in availing the loan advances with less rate of interest of rate. i.e. The borrowed money can be paid in return with less rate of interest. During recession period, the chance of recovery is possible when the investors can get chance to improve the business firms with more production of goods and services. But the contractionary policy views are very rare phenomena. It can be adopted only there is excess money supply with very lesser price level eradicating the sales margin of all the firms. From above findings, we can prove that the views of all monetarists are fetched success and gave remedy solution to solve the economic issue.