Statement three
That by restricting M through raised interest rates or taxation, inflation will decline and the economy will return to a "natural equilibrium"
On the question of consumer and corporate level restrictions to reduce M, there are no known mechanisms apparent in the QTM to return the economy to a "natural equilibrium"3.
Neild, R.,"The 1981 statement by 364 economists" in "Expansionary Fiscal Contraction", CUP, 2014.
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