Monetary Policy Reigns: Shifting Aggregate Demand for Economic Stability
Keynesian Economics suggests that the economy reaches a balance, but this balance isn't always good. Policies like monetary and fiscal can adjust demand to fight inflation or unemployment. Monetarists focus on money supply and demand, believing only monetary policy can change demand. They think unemployment can't be altered much in the long term. Disequilibrium theory argues that markets often don't clear due to various factors.