Monetarists and rational expectations theorists both favor policy rules, and both argue against
discretionary policy.

Question

Quizplus · Accepted Answer

Monetarists and rational expectations theorists both believe that policy rules are more effective and efficient than discretionary policy, as they provide a clear and predictable framework for decision-making. They argue that discretionary policy is often subject to political influence and can lead to inconsistent or conflicting actions by policymakers.

Monetarists and Rational Expectations Theorists Both Favor Policy Rules, and Both