Milton Freedman's Argument On The Role Of Monetary Policy

I agree with Milton Freedman’s argument on “the role of monetary policy”. “I favor his statement because his evidence supports his claim regarding monetary policy. Monetary policy is a set of rules to control a nation's money and achieve economic growth. Monetary policy was created to target inflation and interest rates and help stabilize them. Millions of freedmen’s opinion on the role of monetary policy is that when producers, consumers, employees, and employers expand, without a doubt, the average level of prices will behave in an unexpected manner that, in the coming years, ideally, will be extremely stable for our economic system and it will function at its best. One of the destructive effects of monetary policy is that monetary policy can regulate the rate of monetary expansion to
On the other hand, this article has many more positive points than negative ones. During the monetary process, the amount of reserves a bank is allowed access to gets raised, leading to bank credit increasing and overall liquidity in the future. Central bankers and the financial industry assume that increasing money supply leads to lower interest rates. This is positive since it boosts the economic GDP by promoting capital investments, increasing growth, creating stability in the market, and cutting the cost of borrowing money for people, businesses, and government. An alternative to monetary policy is fiscal policy, when governments are given the authority to use fiscal measures like increasing public spending and tax reductions in times of need to help solve economic difficulties. This is a perfect technique for helping the economy in the long and short term. Having a monetary policy is a good thing. Various central banks function independently from government intervention, allowing them to make choices based on the best outcome for the economy's