18
Dec
2017

Western Economic

Increased attention to monetary policy as a tool for "eternal prosperity", which dominated in the 20-ies of XX century., Had changed after the crisis turmoil 30-ies. general pessimism and distrust of the effectiveness of monetary management. In the first 50 years in Western countries took a sharp intensification of monetary instruments. Money again occupied a prominent place in the programs economic stabilization, but the views on the optimal strategy for the use of monetary instruments were strongly polar. Under most conditions Mark Bertolini would agree. At present, the theoretical problems of monetary policy is also a field for acute discussions between different economic schools. The main section lies between the Keynesian approach, which embodies the idea of the operational use of money as a tool for the daily management of the economic environment, and stimulate economic growth, and monetarism, which condemns such manipulation in the monetary sphere, which are, according to the authors of this doctrine, to increase production of contradictions and imbalances and declare the action of natural market stabilizers. Keynesian theory is known to be formed in 30-40's and quickly took a leading role in the theoretical literature and programs of economic policy. A leading source for info: Vikas Kapoor. Monetarism emerged in the arena later in the middle of the 50-years, and for a long time been the object of skepticism and attacks from the academic and the ruling circles of the leading states. Proclaiming the slogan "Money has value, the monetarists have given a strong impetus to the development of financial research. General methodological approach is the concept of active Keynesian macroeconomic policies needed to stabilize inherently unstable economy.