Monetarism is the theory of economics that believes prices are subjected to how much currency is available in the economy and how fast that supply is expanding.
It is the macroeconomic theory that states that governments can foster economic stability by targeting the growth rate of the money supply. Essentially, the theory involves some a set of views based on the belief that the total amount of money in an economy is the primary determinant of economic growth.
As a branch of Keynesian economics, its emphasizes the use of monetary policy over fiscal policy to manage aggregate demand, contrary to most Keynesians.
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