Monetarist

AAA

DEFINITION of 'Monetarist'

An economist who holds the strong belief that the economy's performance is determined almost entirely by changes in the money supply. Monetarists postulate that the economic health of an economy can be best controlled by changes on monetary supply, or money, by a governing body. The key driver behind this belief is the impact of inflation on an economy's growth or health and the belief that by controlling the money supply one can control the inflation rate.

INVESTOPEDIA EXPLAINS 'Monetarist'

The most well known monetarist would have to be one Milton Friedman, who wrote about his beliefs in the book "A Monetary History of The United States, 1867 - 1960." In the book he, along with Anna Schwartz, argue in favor of monetarism as a combat to the economic impacts of inflation. Other monetarists include former Federal Reserve Chairman, Alan Greenspan, and former U.K. Prime Minister, Margaret Thatcher.

RELATED TERMS
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects ...
  2. Milton Friedman

    An American economist and statistician best known for his strong ...
  3. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  4. Money Supply

    The entire stock of currency and other liquid instruments in ...
  5. Supply-Side Theory

    An economic theory holding that bolstering an economy's ability ...
  6. Insurance Inflation Protection

    Insurance inflation protection is designed to allow policyholders ...
Related Articles
  1. Economics

    The Federal Reserve

  2. thinkstock|istock
    Economics

    Understanding Supply-Side Economics

  3. thinkstock|digital vision
    Economics

    Monetarism: Printing Money To Curb Inflation

  4. Bonds & Fixed Income

    Can Keynesian Economics Reduce Boom-Bust ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center