Keynes, being a good Marshallian, had considerable faith in the capacity of an essentially Fabian state to carry out discretionary policy in the public interest, and he advocated that it do so. The modern monetarist believes that the aggregate demand for money function is rather stable and that other sources of macro- instability are hard to predict, and opts for a
k percent growth rule. The gold standard advocate distrusts the abilities and the motives of bureaucrats and perhaps also doubts the stability of the demand for money function; hence he prefers to peg the price of money in terms of gold and to rely on the stability of the relative price of that commodity in terms of goods in general.
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