| The McCallum rule: The McCallum rule, proposed by economist Bennett McCallum, suggests setting monetary policy based on both the money supply growth rate and the output gap. It proposes adjusting the growth rate of the money supply according to the difference between actual and potential output, aiming to stabilize both inflation and economic output simultaneously. See also Monetary policy, Money supply, Economic growth, Inflation._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. |
