Monetarism emphasizes the use of monetary policy over fiscal policy, advocating for steady money growth to manage the economy.
Monetarism is the idea that monetary policy, specifically steady money growth, should be used over fiscal policy to manage the economy. Economist Milton Friedman advocated for this approach, emphasizing that money, instead of fiscal measures, impacts aggregate demand. This perspective stands in contrast to Keynesian economics, which emphasizes the use of expansionary fiscal policies.
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