Note: This is post #114 in a weekly video series on basic economics.
A monetarist is an economist who holds the strong belief that the economy’s performance is determined almost entirely by changes in the money supply. The most well-known monetarist is Milton Friedman, who wrote about his beliefs in the book “A Monetary History of The United States, 1867 – 1960.” In the book he argued that a lack of money supply was a cause of the Great Depression.
As Tyler Cowen of Marginal Revolution University explains, monetarism is a “goldilocks” theory that argues for a steady rate of fairly low inflation to keep the economy on track.
(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)
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