"Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation."
Economic thought that focuses on the role of the money supply in the economy and the importance of controlling inflation through the manipulation of monetary policy. It is associated with economists such as Milton Friedman.
Money supply: The total amount of money in circulation within an economy.
Inflation: The rate at which the general price level of goods and services in an economy is rising.
Phillips curve: A graphical representation of the inverse relationship between unemployment and inflation.
Velocity of money: The rate at which money is exchanged in an economy.
Quantity theory of money: A theory which states that the price level of goods and services in an economy is directly proportional to the quantity of money in circulation.
Fiscal policy: The use of government spending, taxation, and borrowing to influence the economy.
Monetary policy: The use of interest rates, reserve requirements, and other tools by a central bank to influence the money supply and inflation levels.
Central bank: The institution responsible for managing a country or group of countries' monetary policy.
Business cycles: The natural fluctuations in an economy between periods of growth and contraction.
Supply-side economics: A theory which holds that economic growth can be stimulated by increasing production through policies that encourage investment, entrepreneurship, and market competition.
Classical Monetarism: This is the original form of monetarism that was developed by Milton Friedman in the 1950s. It holds that the economy operates most efficiently when money supply growth is controlled to stabilize inflation rates.
New Monetarism: This theory builds on classical monetarism by incorporating insights from behavioral economics and modern monetary theory. Its focus is on the importance of credit markets and the role of financial intermediaries in determining monetary policy.
Neo-Monetarism: This approach emphasizes the importance of predicting inflation expectations and controlling prices through the use of interest rates.
Supply-Side Monetarism: This form of monetarism focuses on boosting the supply of goods and services through tax cuts, deregulation, and other measures to boost productivity.
Austrian Monetarism: This school of thought emphasizes the role of market forces in shaping the use of money and credit.
Real-Business-Cycle Monetarism: This type of monetarism explains fluctuations in economic activity as driven by changes in productivity and other real factors.
Post-Keynesian Monetarism: This form of monetarism emphasizes the role of government intervention in stabilizing the economy and promoting growth.
International Monetarism: This approach focuses on the international aspects of monetary policy, such as exchange rates and the balance of payments.
"Monetarist theory asserts that variations in the money supply have major influences on national output in the short run."
"Monetarist theory asserts that variations in the money supply have major influences [...] on price levels over longer periods."
"Monetarists assert that the objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary monetary policy."
"Monetarism is commonly associated with neoliberalism."
"Monetarism today is mainly associated with the work of Milton Friedman."
"Friedman and Anna Schwartz wrote an influential book and argued 'inflation is always and everywhere a monetary phenomenon'."
"Though he opposed the existence of the Federal Reserve, Friedman advocated, given its existence..."
"Friedman advocated a central bank policy aimed at keeping the growth of the money supply at a rate commensurate with the growth in productivity and demand for goods."
"A Monetary History of the United States, 1867–1960"
"...who was among the generation of economists to reject Keynesian economics and criticize Keynes's theory of fighting economic downturns using fiscal policy (government spending)."
"...emphasis on the role of governments in controlling the amount of money in circulation."
"'Inflation is always and everywhere a monetary phenomenon'."
"The objectives of monetary policy are best met by targeting the growth rate of the money supply rather than engaging in discretionary monetary policy."
"Monetarism is commonly associated with neoliberalism."
"...wrote an influential book, A Monetary History of the United States, 1867–1960..."
"Monetarists assert that variations in the money supply have major influences on [...] price levels over longer periods."
"Though he opposed the existence of the Federal Reserve, Friedman advocated, given its existence..."
"Monetarists assert that the objectives of monetary policy are best met by targeting the growth rate of the money supply..."
"Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation."