Monetarists believe that money is neutral in that it has no real effect on interest rates, output, or employment. Keynes, alternatively, believed that money is not neutral in both the short and long...

Monetarists believe that money is neutral in that it has no real effect on interest rates, output, or employment. Keynes, alternatively, believed that money is not neutral in both the short and long runs. For Keynesians, money supply can affect real decision making, providing liquidity when firms need it. How would a belief in the nonneutrality of money affect the policy discussion in the book?