Boom to bust over debt management

The role of debt management in monetary policy cannot be explained without a prior understanding of the role of money in the economy. Unfortunately, the role of money in the economy is controversial, with widely divergent views between different economists. One view is that public policy should try to ensure that the price level is kept stable by maintaining a balance between the quantity of money and the quantity of goods and services. The monetarist school associated with Professor Milton Friedman of Chicago University proposed that, in a growing economy, this objective can be achieved ...