monetarism
Currency control doctrine
Monetarism is an economic theory holding that control of the money supply is the primary tool for managing inflation and stabilizing the economy.
Associated with economist Milton Friedman, monetarism opposes active government intervention, arguing that steady, predictable growth in the money supply produces better outcomes than fiscal policy adjustments.
The doctrine influenced central banking in the 1980s.
Monetarism fell out of favor as economies proved harder to manage through money supply alone.
Influential free-market economist
- neoclassicalReviving ancient aesthetic principles
- macroeconomicsStudy of aggregate economies
- SchwartzSurname meaning black
Straw roof maker
- ReaganAmerican presidential surname
- contractionaryCausing economic reduction
- expansionaryPromoting increase in size
Pro-intervention economic theory
- multiplierNumber that scales another
- countercyclicalMoving opposite to trends
- discretionCareful judgment in speech
- fine-tuningSmall precise optimization adjustments
Extreme rapid price escalation
- stagflationStagnant growth meets inflation
- CPIInflation measurement abbreviation
- disinflationDecreasing rate of increase
- ZimbabweSouthern African republic
Friedman
Influential free-market economist
- neoclassicalReviving ancient aesthetic principles
- macroeconomicsStudy of aggregate economies
- SchwartzSurname meaning black
Thatcher
Straw roof maker
- ReaganAmerican presidential surname
- contractionaryCausing economic reduction
- expansionaryPromoting increase in size
Keynesian
Pro-intervention economic theory
- multiplierNumber that scales another
- countercyclicalMoving opposite to trends
- discretionCareful judgment in speech
hyperinflation
Extreme rapid price escalation
- stagflationStagnant growth meets inflation
- CPIInflation measurement abbreviation
- disinflationDecreasing rate of increase
Zimbabwe · Weimar · expectations · anchoring · credibility
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- economic historystock market crash, Industrial Revolution, trade routes, Great Depression, gold standard
- economic policytax policy, fiscal discipline, fiscal stimulus, fiscal restraint, tariff
- monetary policyinflation, central banking, deflation, central bank, interest rates
- Thatcher EraMargaret Thatcher, Thatcher, Iron Lady, poll tax, Falklands War
- macroeconomicsGDP, GNP, gross domestic product, gross national product, inflation rate
monetarismKeynesianism
Interventionist macroeconomic theory
Keynesian economics · fiscal policy · interventionism · deficit spending · central planning
monetarismfiscal policy
State spending and taxation
government spending · deficit spending · stimulus spending · public investment · taxation policy
monetarisminterventionism
Policy of deliberate involvement
economic planning · central planning · dirigisme · statism · collectivism