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monetarism

monetarism

1 7.9
The idea that changing the amount of money mainly causes changes in inflation and unemployment
  • noun
  • /ˈmɒnɪˌtɛrɪzəm/
  • Specialized
: monetarismo
  • Monetarism argues that controlling the money supply is essential for managing inflation and unemployment.
  • the basic assumption of monetarism

Examples

  • Fiscal policy, not capital-market regulation or monetarism, is its chief tool for guiding the economy.

    Academic text (1991)
  • (n9) Monetarism takes many forms, but in general, its adherents want to avoid fiscal fine-tuning and argue in favor of relatively simple rules to bind the monetary authorities and to reduce their scope for discretionary action in trying to run the economy.

    Academic text (2000)
  • Does that mean that monetarism is correct?

    Blog text (14)
  • What does this have to do with Market Monetarism?

    Blog text (27)
  • Wonkish thanks for a very good lesson on conservative monetarism.

    Blog text (4)
  • I guess according to Market Monetarism it doesn't matter why it happened; the Fed should not have allowed NGDP to fall so much, so fast.

    Blog text (34)
  • It is difficult to understand the fine points of difference between monetarism and neoliberalism, for they both strongly advocate the reduction of government spending and promote free markets for similar reasons.

    Academic text (1992)
  • Friedman's monetarism appeared as a partial theory that was embraced wholeheartedly by Thatcherism and less literally by Reaganomics.

    Academic text (1992)
  • However, it is not a proposition of Keynesianism today (and most certainly not of monetarism) that unemployment can be reduced through monetary and fiscal policies to the levels which the bishops seem to desire.

    Academic text (1990)
  • This kind of prudence wasn't adhered to before the crisis (even by Germany), in spite of monetarism being in fashion, and after the crisis it has been completely thrown overboard.

    Blog text (3)

Surface Forms

monetarism singular
monetarisms plural

Morphology

monetarism = monetary (semi-transparent) = money + ism

Semantically clear as an ideology/theory about monetary matters, but the surface form changes (monetary → monetar-) and the addition of '-ism' to an adjective may not be immediately obvious to learners.

Etymology

Monetarism comes from monet- meaning 'money', the same root as money, and the ending -ism meaning 'a system or belief'. So, Monetarism is the idea that changes in the amount of money cause big effects like inflation and unemployment.