The third day he works, and after work, he goes home and consumes another can of beans and four hot-dogs on rolls. He goes to the supermarket and buys food. When he returns home, he once again stops, holds time still, and takes stock of his assets. The Keynesians Versus the Monetarists Keynesians analyze economic behavior and activity in terms of flow variables. Stocks adjust passively in the Keynesian framework.
Monetarists analyze economic behavior and activity in terms of stock variables.
Monetarist economic participants respond to stock disturbances and changes in relative prices. Flows adjust passively in the Monetarist framework.