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- Fri Jul 15, 2016 10:50 am
#27219
Passage A Overview:
The author of this passage provides a scholarly discussion of Milton Friedman’s theory of Monetarism, which holds that control of a nation’s money supply should decrease inflation and lead to a healthier economy. After pointing out the irony of Keynesian thought’s spawning Monetarism, the author expands on the theory, explaining that less money should lead to more savings, a drop in consumer demand, and an eventual decrease in prices, going on to explain that these changes take time.
Passage B Overview:
The author begins the second passage with an overview of Friedman’s theories, and then begins a discussion of the practical ramifications that go along with the application of these theories. The author uses the example of Great Britain in the 1980s, where Margaret Thatcher’s use of a Monetarist approach drove the country into a deep recession. Although this move did reduce inflation, it also increased the unemployment rate and decreased output and investment. Problems continued until Monetarism was discontinued in Great Britain in 1986.
Passages Compared:
While the author of passage A offers an unbiased theoretical discussion of Monetarism, the second author focuses primarily on the dismal results of the practical application of this theory to Great Britain in the 1980s.
The author of this passage provides a scholarly discussion of Milton Friedman’s theory of Monetarism, which holds that control of a nation’s money supply should decrease inflation and lead to a healthier economy. After pointing out the irony of Keynesian thought’s spawning Monetarism, the author expands on the theory, explaining that less money should lead to more savings, a drop in consumer demand, and an eventual decrease in prices, going on to explain that these changes take time.
Passage B Overview:
The author begins the second passage with an overview of Friedman’s theories, and then begins a discussion of the practical ramifications that go along with the application of these theories. The author uses the example of Great Britain in the 1980s, where Margaret Thatcher’s use of a Monetarist approach drove the country into a deep recession. Although this move did reduce inflation, it also increased the unemployment rate and decreased output and investment. Problems continued until Monetarism was discontinued in Great Britain in 1986.
Passages Compared:
While the author of passage A offers an unbiased theoretical discussion of Monetarism, the second author focuses primarily on the dismal results of the practical application of this theory to Great Britain in the 1980s.
