Question

Explain the difference between a Keynesian and a Friedmanite in one sentence or less.

Answer 1

The distinction between both philosophies is that monetarist economics requires money management in the economy, while Keynesian economics includes government spending.

Monetarists claim that they are regulating the money supply that comes through the economy while allowing the rest of the world to repair itself. Keynesian economists, on the other hand , believe a troubled economy will continue in a downward spiral unless an intervention drives consumers to purchase more goods and services.