Macroeconomy revision notes

The First World War was 'Total' in nature and was the first traumatic war Great Britain experienced. One of the features of the war leading up to Britain's involvement was the use of propaganda posters to divert all attention to the War from the home front. The home front was defined as the active support of a nation for its military at war from the homes of the civilian population. One element of the home …

…When these are deliberately changed to affect the economy, the action is known as the monetary policy. READ PAGES 315-32043E Limitations of Monetary and Fiscal policies: Keynesians regard monetary policy as relatively ineffective and advocate the use of fiscal policies to achieve stability. Monetarists regard the economy as unstable. They see the control of the money supply as being the most important factor in determining aggregate demand and argue that fiscal policy is ineffective.