jan 19, 1976 - Monetarism –Milton Friedman

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The basic thought process of monetarism is that GDP is determined by the amount of currency within the economy and that increased citizen buying power will help short term but only increase inflation in the long term and not actually provide any meaningful change. Monetarist policy, spearheaded by Milton Friedman wanted individuals to focus on maintaining price stability instead of expanding the money supply. Friedman advocated that increases in the supply of currency was inflationary and should be avoided at all costs. Monetarism and individuals like Friedman paved the way for another swing to the right. As monetarist policy encourages minimal government intervention. A stark contrast to the more left leaning Keynesian economics that paved the way for Monetarism.

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