National Self interest

One cause of world war one was the National self-interest of the western allied countries. The allies were too busy with issues regarding their own countries and they did not have the time or the resources to intervene in issues that were not directly affecting them. The great depression and the war had left the allies economically weak and the population still had strong memories of the horrors of war. A politician taking action and …

…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.