Here is the synopsis of our sample research paper on Basics in Economic Thought: Keynesianism versus Monetary Policy. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3 page paper provides this classic debate as it respects Keynesianism versus monetarism. This paper explains the basic premises concerning the two different points of view.
Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: RT13_SA543eco.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
done when the economy is on the decline. Keynesianism, on the other hand, does claim that fiscal policy changes are effective even when the money supply does not change. A
student asks: " Why do monetarists still object to fiscal policy even if it is accompanied by a change in the money supply?" First, it should be noted
that a key difference between Keynesians and Monetarists is that the latter believes that the supply of money affects spending. Hence, if there is more money, people will spend more
and if there is less, they will hold tight to their pocketbooks. Therefore, tweaking the interest rates and so forth in the form of monetary policy makes sense. On the
other hand, making fiscal policy which has an indirect effect on the money supply, will not result in a definite change. Monetary policy creates a more instant and direct response
to the problem, which is why monetarists do not see fiscal policy as adequate in addressing economic problems. Of course, to Keynesians, this is not the case. Under that
paradigm, there is a sense that the market is self-correcting and that the less government intervenes, the better. Ip (2005) relays information on how the Federal Reserve would change rates
due to the prospect of inflation. In fact, the Federal Reserve has been reactionary and not exactly "hands off" in recent years. Ironically, Alan Greenspans ideas are generally supported by
people with various political leanings. Clearly, as evidenced by a statement in a New York Times article, Greenspan does embrace monetary policy: "With the stock market falling and companies laying
off workers, the Federal Reserve under Alan Greenspan was racing to prevent a recession in the early months of 2001. Again and again, the Fed cut its benchmark short-term interest
...