The main idea of monetarism is that the money supply is the most important factor in economic performance. Monetarists argue that variations in the money supply have major influences on national output in the short run and on the price level over longer periods. They emphasize the role of governments in controlling the amount of money in circulation to manage economic stability and growth.
What is the main idea of monetarism?
Money should be minted in gold or silver.
The money supply is the most important factor in economic performance.
All money should be issued by the federal government.
Interest rates are the most important factor in economic performance.
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