Have to write a paper detailing what monetary and fiscal policies both a Keynesian and a Monetarist would write regarding high unemployment and high inflation. Thank you!

-- Candy Parker (CandyP719@aol.com), September 23, 2000

Answers

A Keynesian would increase the prime lending rate to slow the economy and inflation. They would offer many government sponsered activities that would lead to the employment of many people.

A Monetarist would lower the prime lending rate to get spending started which would lead to more work and more jobs. The additional tax money from the volume increase of transactions would then be given back to the money makers (tax payers) in order to curb inflation.

-- Fred Marlow (chatmdo@aol.com), August 06, 2001.