Monetary Policy Debate: Money's Impact on Economy and Inflation Unveiled.
Money has a big impact on output, prices, and jobs. Keynesians think monetary policy affects the economy. Monetarists disagree, saying it causes instability and inflation. Classical economists believed more money meant higher prices, but didn't affect real income or jobs. The Great Depression changed this view, leading to Keynesian ideas. Keynes said in certain cases, more money doesn't lower interest rates.