Monetarism: Difference between revisions

'''Monetarism''' is an economically [[file:Cap.png]] [[Capitalism|right]] ideology, whose general economic theory created by [[File:Chilib.png]] [[Chicagoan Libertarianism|Milton Friedman]] to cure inflation. He believes that inflation, even though being really bad, the government's only role as far as monetary policy is the matter should be to maintain inflation under control, they think that there should be a very low inflation rate (1%-3%) but as stable as possible, since it being stable eliminates the market distortion both non-stable inflation/deflation brings. In modern times, several Monetary Authorities, notably Former-FED Chair Ben Bernanke, have been noted Monetarists. Monetarist Policies were used by Bernanke during the 2008 Housing Crisis with expansion of QE (Quantitative Easing) and the overall expansion of Money Supply.

===The Federal Reserve Under Ben Bernanke (2006-2014)===

Ben Bernanke was elected by President George H.W Bush along with the U.S Senate as Federal Reserve Chair on February 1st of 2006, succeeding the acclaimed Chair Alan Greenspan. Bernanke himself was considered an Orthodox Monetarist, and his skill was soon put to the test 2 Years after his Appointment during the 2008 Housing Crisis. The Federal Reserve ramped up Money Printing, as well as a Monetary Policy known as Quantitative Easing, or QE, whereby the Federal Reserve purchased several Mortgage-Backed Securities to pump money into the economy, as well as ease off the pain caused by MBS. While many economists call the Federal Reserve's efforts a success, many others, such as Anti-Fed Representative Ron Paul, criticized the FED and Bernanke for the ensuing Stagflation of 2012.

While controversial in many circles, most Economists call the Chairmanship of Ben Bernanke a relative success. He was succeeded by Janet Yellen, one of his deputies, in early January of 2014.