Monetarist theory

Definition

An economic theory that focuses on controlling the money supply as a means to stabilize inflation and promote steady economic growth.

Related terms

Inflation: The general increase in prices over time, resulting in reduced purchasing power of money.

Federal Reserve: The central banking system of the United States responsible for monetary policy and regulating banks.

Interest rates: The cost of borrowing money or the return earned from lending money, typically set by central banks.