Monetarism (economics)
Created: 2022-12-27
Status: #soil
Last Edited: 2022-12-27
Topic: economics
# What is Monetarism (economics)?
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Monetarism is an economic theory that focuses on the role of the money supply in controlling inflation and the overall level of economic activity.
Monetarists believe that governments should use monetary policy tools, such as interest rates, to manage the money supply and thereby control inflation and economic growth.
The main proponent of monetarism is Milton Friedman, who argued that governments should target a constant or slowly growing money supply in order to keep inflation low and economic growth stable.
This idea became popular in the late 1970s and early 1980s as an alternative to Keynesian Economics, which had been dominant since the Great Depression.