The Keynesians of the 1950s and 60s had adopted the view that monetary policy does not impact aggregate output or the business cycle based on evidence that, during the Great Depression, interest rates had been extremely low but output remained depressed.
Monetary policy does not impact aggregate output. This was during the Great Depression. Monetary policy does not impact the business cycle based on evidence that interest rates had been extremely low. This was during the Great Depression. The Keynesians of the 1950s and 60s had adopted the view this. Output remained depressed.