Answer to Question #293382 in Macroeconomics for Ali

Question

What is the theory of Monetarism Economists?

Answer 1

Monetarism economists’ theory explains the economic stability focusing on the money supply by the government. The theory claims that changes in money supply in an economy significantly affect economic growth. Enough money need to be supplied into the economy to ensure stability, and excess or less can have devastating effects. For example, too much money in the economy causes inflation.