
FAQ About Milton Friedman

What is "monetarism" as proposed by Milton Friedman?
Monetarism is an economic theory that focuses on the macroeconomic effects of the supply of money and central banking. Under this theory, Friedman argued that the regulation of money supply should be the main tool of public policy for managing economic fluctuations, rather than fiscal policy. He posited that variations in the money supply have major short-term and long-term effects on the economy, particularly influencing inflation and employment.