Monetarist


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Related to Monetarist: Keynesian, Monetarist Theory

Monetarist

An economist who believes that changes in the money supply are the most important determinants of economic activity and economic cycles. See: Monetarism

Monetarist

An economist who believes that inflation results directly and exclusively from the expansion of a country's money supply. That is, if a government prints money, inflation will result. Monetarists believe that a government ought to set target interest rates to encourage or slow growth in the supply. For example, when an economy is growing rapidly, monetarists recommend raising interest rates. On the other hand, they recommend lowering interest rates in a recession. In general, however, monetarists recommend that a government maintain a relatively steady money supply, with an allowance for growth to keep up with GDP expansion. Many monetarist beliefs, notably the one regarding interest rates, are still commonly held, though many economists believe the relationship between money supply and inflation is more complex than monetarism theorizes. Milton Friedman is considered the father of modern monetarism.

monetarist

A proponent, usually an economist, of monetarism. Milton Friedman is probably America's best-known monetarist.
References in periodicals archive ?
"A Monetarist Model for Economic Stabilization: Review and Update," Federal Reserve Bank of St.
As both Keynesian and monetarist analyses make clear, adjustments to the FOMC's policy rates are needed to maintain an appropriate monetary stance as economic conditions change.
After several years of teaching and research in the tradition of Keynesian economics (monetarist economics), the ideas and concepts of Keynesian economics (monetarist economics) become ingrained in the mind of the Keynesian (monetarist) economist.
The Market Monetarist School is known chiefly for its recommendation that central banks adopt a policy of targeting the level of nominal income (NGDP).
The monetarist version of the Phillips curve was simultaneously rejected and reinforced by the work of Robert Lucas of the University of Chicago, Thomas Sargent of the Hoover Institution, and others who became known as New Classical macroeconomists.
(2011), the monetarists define the beginning of the monetary transmission general form as a change in the monetary base, which is determined by the implementation of monetary policy instruments, especially the open market operations.
Europe, the US and Japan shift monetary policies, abandoning the monetarist fight against inflation and tackling unemployment and euro protection with Keynesian methods
This is also why monetarist theory is referred to as the quantity theory of money.
The Left have never forgiven her for her brutal monetarist policies, and her taming of the union movement.
Keynesian and monetarist theories dominate macro-economics in general and balance of payments theories in particular.
That was when Mrs Thatcher's Tories and their monetarist ideas and high interest rates killed off industries like steel and coal.
Mr Lilico, a monetarist at the right-ofcentre think tank, believes the UK is heading for a brief double-dip recession early next year, with a boom soon after.