Use monetary policies to stabilize their economy

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John Maynard Keynes who is considered to be the father of Macroeconomics by many once said "In the long-run we are all dead” to emphasize why decision-makers should not worry about long-run effects of policies. As we have also learned in this module changes in the money supply don’t have any effect on real aggregates like production in the long-run. However why do you think many countries still use monetary policies to stabilize their economy?

Reference no: EM131101361

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