Monetarist School

The Monetarist School of economic thought emphasizes the importance of controlling the money supply to manage economic stability and growth. Monetarists believe that variations in the amount of money circulating in the economy have a direct impact on inflation, unemployment, and overall economic activity. They argue that managing the money supply through policies like steady growth can prevent inflation and promote steady economic growth. Led by economist Milton Friedman, this approach contrasts with other theories that focus more on government spending or fiscal policy. Monetarists see stable, predictable money supply increases as key to a healthy economy.