monetarism

monetarism economic theory that monetary policy, or control of the money supply, is the primary if not sole determinant of a nation's economy. Monetarists believe that management of the money supply to produce credit ease or restraint is the chief factor influencing inflation or deflation, recession (see depression ) or growth; they dismiss fiscal policy (government spending and taxation) as ineffective in regulating economic performance. Milton Friedman was the leading modern proponent for monetarism.

monetarism Economic and monetary theory that argues changes in monetary stability are the principal causes of changes in the economy. It asserts the importance of controlling the money supply as the means of achieving a non-inflationary, stable economy capable of supporting high employment and economic growth. This theory is associated particularly with the theories advanced by Milton Friedman in the 1950s and 1960s. Monetarism exerted great influence on government policy in the UK and the USA during the 1980s.