Monetarism versus Neo-Keynesianism in Today’s Monetary Policy
Abstract
In a world economic environment of increased complexity and interconnectivity, the issues surrounding the way monetary policy is being conducted gain an increased importance, as the soundness of the economy is more and more dependent on central bank decisions. In this context, the paper aims at providing, from a doctrinarian perspective, a pertinent theoretical analysis on the topic of central bank monetary behaviour. With this in mind, we will examine the two major economic philosophies (monetarism and neo-Keynesianism) that have influenced capitalist practice in the last half a century and attempt at issuing some broad guidelines about the future monetary governance.
Keywords: Monetary policy, Monetarism, Neo-Keynesianism, Quantitative easing, Monetary policy instruments, Economic doctrines.
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