monetarists
Money supply advocates
Monetarists are economists who emphasize the role of money supply in determining economic conditions.
They argue that controlling the amount of money in circulation is the primary tool for managing inflation and stabilizing the economy, rather than government spending or fiscal policy.
The term is most associated with Milton Friedman and the Chicago School of economics: Monetarists blamed the Federal Reserve for deepening the Great Depression.
- price stabilityConsistent general price levels
- neoclassicalReviving ancient aesthetic principles
Medium of exchange
- liquidityConvertibility to cash
- circulationMovement through a system
- banknotesPaper currency notes
- cashReady spending funds
State management of currency
- interest ratesPrice paid for borrowing
- quantitative easingAsset purchases to boost economy
- tighteningMaking less loose
- expansionaryPromoting increase in size
discount rate · inflation control · disinflation · anti-inflation
Pro-intervention economic theory
- fiscal stimulusGovernment spending to boost economy
- deficit spendingExpenditures funded by debt
- government spendingState allocation of funds
- multiplier effectHow spending compounds economically
crowding out · stagflation · fine-tuning · budget deficit · fiscal policy · austerity
Milton Friedman
- price stabilityConsistent general price levels
- neoclassicalReviving ancient aesthetic principles
currency
Medium of exchange
- liquidityConvertibility to cash
- circulationMovement through a system
- banknotesPaper currency notes
cash · credit · coins · M2 · bank reserves · deflation · inflation
central banking
State management of currency
- interest ratesPrice paid for borrowing
- quantitative easingAsset purchases to boost economy
- tighteningMaking less loose
expansionary · discount rate · inflation control · disinflation · anti-inflation
Keynesian
Pro-intervention economic theory
- fiscal stimulusGovernment spending to boost economy
- deficit spendingExpenditures funded by debt
- government spendingState allocation of funds
multiplier effect · crowding out · stagflation · fine-tuning · budget deficit · fiscal policy · austerity
- free marketersAdam Smith, Milton Friedman, Ayn Rand, free traders, laissez-faire
- Chicago EconomistsMilton Friedman