monetarism

[ mon-i-tuh-riz-uhm, muhn- ]

noun

, Economics.

1. a doctrine holding that changes in the money supply determine the direction of a nation's economy.

monetarism

/ ˈmʌnɪtəˌrɪzəm /

noun

1. the theory that inflation is caused by an excess quantity of money in an economy
2. an economic policy based on this theory and on a belief in the efficiency of free market forces, that gives priority to achieving price stability by monetary control, balanced budgets, etc, and maintains that unemployment results from excessive real wage rates and cannot be controlled by Keynesian demand management

monetarism

1. The economic doctrine that the supply of money has a major impact on a nation's economic growth. For example, monetarists prefer to control inflation by restricting the growth of a nation's money supply rather than by raising taxes. The doctrine is associated with Milton Friedman .

Derived Forms

• ˈmonetarist, nounadjective

Other Words From

• mone·ta·rist noun adjective

Word History and Origins

Origin of monetarism¹

An Americanism dating back to 1965–70; monetar(y) + -ism

Example Sentences

July 31 marks the centenary of the birth of the high priest of monetarism, Milton Friedman.

From The Daily Beast

Wapshott gives us no less than Milton Friedman, the father of monetarism, claiming himself something of an heir to Keynes.

From The Daily Beast