monetarism

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Related to Monetarist Theory: Rational Expectations Theory
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Words related to monetarism

an economic theory holding that variations in unemployment and the rate of inflation are usually caused by changes in the supply of money

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References in periodicals archive ?
Many investors similarly weaned on monetarist theory reflexively shorted the dollar and took long positions on commodities.
According to the monetarist theory the excessive expansion of money supply will inherit inflation.
In light of these developments, the most durable aspects of monetarist theory are those that hold even in environments where there are not reliable money data.
This section argues that Johnson's (1972) equation discriminates between the monetarist theory and a simple Keynesian multiplier theory in which there is no monetary sector.
The monetarist theory of inflation is a long-run theory; it does not purport to explain short-run increases in the general price level (Hafer and Wheelock 2001).
In the first two years of her administration the North-East lost 40pc of its manufacturing jobs as the cold blast of monetarist theory laid waste the region's economy, when unemployment was used as a weapon to curb the runaway inflation that characterised the 1970s.
Monetarist theory predicted the outcome: A swift, sharp reduction in money growth (and the attendant spike in interest rates) initially affected real economic activity and then, over time, lowered inflation.