A theory of controlling money supply growth first proposed by the economist Milton Friedman. According to this theory, the most effective way to control inflation is to have a central bank increase the money supply by a certain amount (the "k" variable) each year, regardless of the state of the economy. The k variable is equal to the growth of the real Gross Domestic Product.

Related information about k-percent rule:

1. Friedman's k-percent rule - Wikipedia, the free encyclopedia
   Friedman's k-percent rule is the monetarist proposal that the money supply should be increased by the central bank by a constant percentage rate every year, ...
    
2. K-Percent Rule Definition | Investopedia
   A theory of macroeconomic money-supply growth first postulated by Nobel Prize- winning economist Milton Friedman. The theory states that the best way to ...
    
3. Speech: The Benefits of Systematic Monetary Policy (March 3, 2008 ...
   Mar 3, 2008 ... Friedman's k-percent Rule. The idea that monetary policy should be conducted in a systematic and predictable way is not new. One of the ...
    
4. What is k-percent rule? definition and meaning
   Definition of k-percent rule: A theory of controlling money supply growth first proposed by the economist Milton Friedman. According to this theory, the most ...
    
5. k Percent Rule - Economics - About.com
   k Percent Rule Defined - A Dictionary Definition of k Percent Rule.
    
6. A k-percent rule for monetary policy in West Germany - Ideas - RePEc
   Downloadable! The concept of rules for monetary policy has been more and more critized in recent years. The Deutsche Bundesbank is also urged to give up ...
    
7. A k-percent rule for monetary policy in West Germany - Ideas - RePEc
   A k-percent rule for monetary policy in West Germany. Contents: Author info; Abstract; Bibliographic info; Download info; Related research; References; Citations ...
    
8. friedman's money supply rule vs. optimal interest rate policy
   calibrated New Keynesian models, we find that the Friedman k-percent rule appears to induce both determinacy and stability under learning. Thus this open- ...