Share this site with del.icio.us Share this site with furl Share this site with stumbleupon Share this site with google Add this site to Yahoo Bookmarks Click here to add us to your favorites Subscribe to our Feed





monetarism

Definition

School of economic thought (also called the Chicago School) which proposes that the quantity of money (the money supply) in an economy is a key determinant (1) of economic activity, (2) in creating or curbing inflation, and (3) in managing economic-cycles. In contrast to Keynesian economics, monetarism maintains that changes in money supply greatly influence aggregate demand. And that, any attempt by a government to increase aggregate-demand (by injecting more money in the economy) will, in the long-term if not earlier, will instead result in higher prices. It is against any attempt to control economy through fiscal-policy, and advocates supply-side economics and cutting government-spending. Credited for preventing economic-depressions for the last 60 years, its influence on economic policy-makers is attributed largely to the University of Chicago economists, chiefly the Nobel-laureate professor Milton Friedman (1912-2006).

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z