Monetarists believe: since the economy is operating at full employment, any stimulative monetary policy will cause the inflation rate to rise. the cause-and-effect relationship hypothesized by the Keynesians is an accurate description of how monetary policy works. the cause-and-effect relationship hypothesized by the Keynesians is backwards, and decreases in the money supply actually stimulate economic activity. the cause-and-effect relationship hypothesized by the Keynesians understates the impact of stimulative monetary policy.