The 'conditional-projection' approach used by the Australian government in monetary policy between 1976 and 1985 was based on:
A) the monetarist view of inflation.
B) the Keynesian view of inflation.
C) the fact that the demand for money was highly volatile.
D) the fact that the velocity of money was highly volatile.

Question

Quizplus · Accepted Answer

The 'conditional-projection' approach used by the Australian government in monetary policy between 1976 and 1985 was based on the monetarist view of inflation, which emphasizes the importance of controlling the money supply as a means of stabilizing the economy and controlling inflation. The approach focused on targeting the growth rate of the money supply, with adjustments made based on the projected level of inflation.

The 'Conditional-Projection' Approach Used by the Australian Government in Monetary