Lesson 12 Lesson 12: Monetary Policy
Presented by: Dr. Tawni Ferrarini
Northern Michigan University
Sound Money and Monetary Policy
You’ve probably heard the saying “money is the root of all evil.” It’s not true. Money is an instrument of exchange and the indispensable element of a prosperous society. Sound money stabilizes an economic system. It reduces uncertainty and encourages trust. Without it people disengage from economic activity and the economy suffers. People suffer. In this lesson we will explore why and how sound money is the root of human flourishing.
Anna J. Schwartz
Because money is used in virtually all economic transactions, it has a powerful effect on economic activity. The lesson that the history of money supply teaches is that to ignore the magnitude of money supply changes is to court monetary disaster.
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