Monetaristlikku

Monetaristlikku refers to the economic philosophy of monetarism, which emphasizes the role of governments in controlling the amount of money in circulation. Monetarists believe that inflation is primarily caused by excessive growth in the money supply and that controlling this growth is the most effective way to stabilize the economy. Key figures in monetarism include Milton Friedman.

The core tenets of monetarism include the idea that the velocity of money (the rate at which money changes hands) is relatively stable. This stability, combined with the belief that changes in the money supply have a predictable impact on nominal income, forms the basis of their policy recommendations. Monetarists advocate for a steady, predictable growth rate in the money supply, often suggesting a rule-based monetary policy rather than discretionary interventions by central banks.

Monetarists argue that attempts to fine-tune the economy through fiscal policy, such as government spending and taxation, are often ineffective or even destabilizing due to lags in implementation and unpredictable effects. Instead, they contend that monetary policy is the most potent tool for managing inflation and can also influence output and employment in the short run. However, they generally believe that in the long run, monetary policy primarily affects the price level, not real economic variables. The influence of monetarism peaked in the late 20th century, shaping the policies of many central banks.