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Economic Theories
Keynesian Monetary Central Planning
Keynesian Monetary Central Planning
Parent term
Economic Theories
More about Keynesian Monetary Central Planning
Discusses The Following
Experts
Child Terms
Notes
Seeks domestic
price
and wage
inflation
of 2%
Enabled by free-floating currencies and ability for
central bank
s to print
money
(no
gold
standard)
With a
gold
standard, high
inflation
would cause
capital
flight
Keynesian Monetary Central Planning
Criticisms
Resulted in the
Dirty Float Era
Continuous
inflation
makes US
wages
noncompetitive and creates
trade
deficits. Allowing
deflation
would make US industry competitive and reduce
trade
imbalances