Share This Article:

Economic Definition of money supply rule. Defined.

Offline Version: PDF

Term money supply rule Definition: A proposed policy that would constrain the growth of the money supply to equal growth of the economy's production capabilities. The logic behind such a rule is to prevent discretionary use of monetary policy, which is often blamed for political business cycles and the resulting problems of inflation and unemployment.


« money supply | monopolistic competition »


Alphabetical Reference to Over 2,000 Economic Terms