Proponents of the monetary rule believe that a constant growth rate in the money supply will lead to less uncertainty and greater credibility.

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Proponents of the monetary rule argue that a predictable and stable growth rate in the money supply would keep inflation in check, reduce uncertainty, and enhance the credibility of monetary policy. This is because people would have greater confidence in the central bank's ability to maintain price stability over the long term, and they would adjust their expectations and behavior accordingly. By contrast, if the money supply is allowed to fluctuate unpredictably or if the central bank pursues discretionary policies that are perceived as arbitrary or politicized, it could cause confusion, volatility, and loss of confidence in the currency.

Proponents of the Monetary Rule Believe That a Constant Growth