Table :

TABLE 18-1 Five Key Questions About Macroeconomic Policy

 

Classical macroeconomics

Keynesian macroeconomics

Monetarism

Great Moderation consensus

1.

Is expansionary monetary policy helpful in fighting recessions?

No

Not very

Yes

Yes, except in special circumstances

2.

Is expansionary fiscal policy effective in fighting recessions?

No

Yes

No

Yes

3.

Can monetary and/or fiscal policy reduce unemployment in the long run?

No

Yes

No

No

4.

Should fiscal policy be used in a discretionary way?

No

Yes

No

No, except possibly in special circumstances

5.

Should monetary policy be used in a discretionary way?

No

Yes

No

Disputed