Monetarism

Monetarism is an economic theory that emphasizes the role of government control over the money supply as a primary tool for managing economic activity and controlling inflation. It argues that changes in the amount of money circulating in the economy directly influence output, employment, and prices. Monetarists believe that too much money leads to inflation, while too little can cause recession. They advocate for a steady, predictable increase in the money supply, aligning economic growth with the capacity of the economy to produce goods and services, thus stabilizing prices and promoting a healthy economy.