Acton Institute Powerblog

Game of Theories: The Monetarists

Share this article:
Join the Discussion:

Free weekly Acton Newsletter

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.)

Click here to see other videos in the Introduction to Economics series.

Enjoy the article?

Click below to view our latest and most popular posts!

Read More

Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).

Comments