Monetarism

Monetarism
A set of views based on the belief that inflation depends on how much money the government prints. It is closely associated with Milton Friedman, who argued, based on the quantity theory of money, that the government should keep the money supply fairly steady, expanding it slightly each year mainly to allow for the natural growth of the economy.

Monetarism had its heyday in the early 1980s, when economists, governments and investors eagerly jumped at every new money supply statistic. In the years that followed, however, monetarism fell out of favor with economists, and the link between different measures of money supply and inflation proved to be less clear than most monetarist theories had suggested. Many central banks today have stopped setting monetary targets and instead have adopted strict inflation targets.


Investment dictionary. . 2012.

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  • monetarism — mon‧e‧ta‧ris‧m [ˈmʌntərɪzm ǁ ˈmɑː ] noun [uncountable] ECONOMICS the idea that an economy can be controlled by its central bank influencing the money supply (= amount of money in the economy at a particular time). For example, the central bank… …   Financial and business terms

  • monetarism — mon e*tar*ism, n. An economic theory holding that the rate of growth of the money supply is the priunciple cause of changes in inflation, economic growth, and unemployment. [PJC] …   The Collaborative International Dictionary of English

  • monetarism — MONETARÍSM s. n. teorie şi politică ce atribuie modificării masei banilor în circulaţie o importanţă centrală, chiar decisivă, în procesul activităţii economice şi în stabilirea nivelului preţurilor. (după germ. Monetarsystem) Trimis de raduborza …   Dicționar Român

  • monetarism — monetarism, monetarist, monetary These are pronounced with the first syllable as mun in BrE and as mon in AmE …   Modern English usage

  • monetarism — ► NOUN ▪ the theory that inflation is best controlled by limiting the supply of money circulating in an economy. DERIVATIVES monetarist noun & adjective …   English terms dictionary

  • monetarism — ☆ monetarism [män′ə tər iz΄əm ] n. a theory which holds that economic stability and growth result from maintaining a steady rate of growth in the supply of money …   English World dictionary

  • Monetarism — Economics …   Wikipedia

  • monetarism — monetarist, n., adj. /mon i teuh riz euhm, mun /, n. Econ. a doctrine holding that changes in the money supply determine the direction of a nation s economy. [1965 70, Amer.; MONETAR(Y) + ISM] * * * School of economic thought that maintains that… …   Universalium

  • monetarism —    This theory relates changes in inflation to the level of the money supply in relation to the level of real output. Monetarism is also used as a generic term for neo liberal economic theories (such as liberalization and deregulation). A… …   Encyclopedia of contemporary British culture

  • monetarism —    An economic policy associated with Milton Friedman and his Chicago school that suggests that government should minimise its involvement in economic policy, except for controlling the money supply as a means of defeating inflation. Inflation is …   Glossary of UK Government and Politics

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