monetarism: meaning, definition, pronunciation and examples
C2formal, academic, economic
Quick answer
What does “monetarism” mean?
An economic theory that emphasizes the role of governments in controlling the amount of money in circulation as the primary method of stabilizing the economy.
Audio
Pronunciation
Definition
Meaning and Definition
An economic theory that emphasizes the role of governments in controlling the amount of money in circulation as the primary method of stabilizing the economy.
A school of economic thought associated with Milton Friedman, asserting that variations in the money supply have major influences on national output in the short run and the price level over longer periods, and that objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary fiscal policies.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences; the concept is identical in both varieties. Spelling follows respective conventions (e.g., 'monetarise' vs. 'monetarize' for related verbs).
Connotations
In British discourse, 'monetarism' is strongly associated with Margaret Thatcher's policies in the 1980s. In American discourse, it is more closely linked to Milton Friedman and the Federal Reserve's policies.
Frequency
Slightly more frequent in British English due to historical political debates surrounding Thatcherism.
Grammar
How to Use “monetarism” in a Sentence
[Subject] advocates/rejects monetarism.Monetarism [verb] that...The tenets/principles of monetarism.Vocabulary
Collocations
Examples
Examples of “monetarism” in a Sentence
verb
British English
- The government was advised to monetarise the debt.
- They sought to monetarise the economic approach.
American English
- The Fed monetarized the deficit during the crisis.
- He argued against monetarizing the stimulus.
adverb
British English
- The economy was managed monetaristically.
- They argued monetaristically for control of the supply.
American English
- The Fed acted monetaristically in that period.
- He thinks monetaristically about market corrections.
adjective
British English
- The monetarist policies were controversial.
- A monetarist framework guided the budget.
American English
- The monetarist approach dominated the 1980s.
- She holds monetarist views on inflation.
Usage
Meaning in Context
Business
Rare in general business; appears in financial analysis or economic commentary.
Academic
Common in economics, political science, and history texts discussing 20th-century economic policy.
Everyday
Very rare; mostly in political commentary or historical discussion.
Technical
Core term in macroeconomic theory and economic history.
Vocabulary
Synonyms of “monetarism”
Strong
Neutral
Weak
Vocabulary
Antonyms of “monetarism”
Watch out
Common Mistakes When Using “monetarism”
- Using 'monetarism' to refer to any policy related to money (it's a specific theory). Confusing it with 'monetary policy' (which is a tool, not the theory). Misspelling as 'monetarianism'.
FAQ
Frequently Asked Questions
Milton Friedman, the American economist and Nobel laureate, is the figure most closely associated with modern monetarism.
The primary tool is controlling the growth rate of the money supply, often through central bank operations like setting interest rates or reserve requirements.
While pure monetarism has waned since the 1980s, its core ideas about the importance of money supply and controlling inflation remain deeply embedded in modern central banking and macroeconomic policy.
A major criticism was that the relationship between money supply and economic output proved unstable in practice, making it difficult to control the economy precisely by targeting money supply alone.
An economic theory that emphasizes the role of governments in controlling the amount of money in circulation as the primary method of stabilizing the economy.
Monetarism is usually formal, academic, economic in register.
Monetarism: in British English it is pronounced /ˈmʌn.ɪ.tər.ɪ.zəm/, and in American English it is pronounced /ˈmɑː.nə.ter.ɪ.zəm/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “The monetarist turn”
- “Drinking the monetarist Kool-Aid”
Learning
Memory Aids
Mnemonic
MONETArism focuses on MONEY as the key to the economy (like MONETA, the Roman goddess of money).
Conceptual Metaphor
ECONOMY IS A MACHINE (where controlling the money supply is like regulating the fuel).
Practice
Quiz
Monetarism is primarily contrasted with which other major economic theory?