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Chapter 17: Disputes over Macro Theory and Policy
VS.
Classical Economics and Keynes
Classical view
Keynesian view
Causes of Macro Instability:
Mainstream view
Monetarist view
Does the Economy Self-Correct?
New classical view of self-correction
Mainstream view of self-correction
Rules or Discretion? The Macro Policy Debate:
In support of Policy Rules
In defense of discretionary stabilization policy
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