Monetarism: Difference between revisions

'''Monetarism''' is an economically [[file:Cap.png]] [[Capitalism|right]] ideology, whose general economic theory was created by [[File:Chilib.png]] [[Chicagoan Libertarianism|Milton Friedman]] to cure inflation. He believes that inflation, even though being really bad, the government's onlyprimary role asin farthe aseconomy should be monetary policy iswith the mattergoal shouldof be to maintainkeeping inflation under control. Specifically, theyhe thinkthinks that there should be a very low inflation rate (1%-3%), butand he wants this to be 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 Federal Reserve Chair and Nobel Prize winner Ben Bernanke, have been noted Monetaristsmonetarists. Monetarist Policiespolicies were used by Bernanke during the 2008 HousingGreat CrisisRecession with expansion of QE (Quantitative Easing) and the overall expansion of Money Supply.

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 2two Yearsyears after his Appointmentappointment during the 2008 Housing Crisis. The Federal Reserve ramped up Money Printing, as well as a Monetary Policy known as Quantitative Easing, or QE, wherebyin thean Federal Reserve purchased several Mortgage-Backed Securitiesattempt to pump money intostabilize the economy, as well asand ease off the pain caused by MBS. While manymost economists call the Federal Reserve's efforts a success, manya few others, such as Antithe staunch anti-Fedfiat-currency Representative Ron Paul, criticized the FEDFed and Bernanke for the ensuing Stagflationstagflation of 2012.

While controversial in many[[File:Ancap.png]] [[Anarcho-Capitalism|extremely libertarian]] or leftist circles, most Economists callconsider the Chairmanshipchairmanship of Ben Bernanke to have had a relativepositive successeffect. He was succeeded by Janet Yellen, one of his deputies, in early January of 2014.

Monetarism is an approach to Macroeconomics which stresses a large focus upon Monetary Policy instead of Fiscal Policy, in contrast to [[File:Keynes.png]] [[Keynesianism]]. Monetarism prefers Monetary Policy over Fiscal due to its belief that Monetary Policy beingis significantly easier to change than Fiscal Policy, coupledand withcan itshave usuala dislikefar forgreater governmenteffect spendingon the most important issue (to him) which is inflation. While Monetarism is technicallyquite indifferent contrast tofrom Keynesianism, they both hold the axiomatic beliefs of Central Banking, Fiat Currency and so forth, and are usually combined in some form.

Monetarism is a specter of ancient theory (circa 1950) that occasionally is summoned by nations being plagued by high inflation and prices. OnceAfter possessing policya local central banker, he will destroy printers as penance to [https://en.wikipedia.org/wiki/Milton_Friedman Milton Friedman], begginghoping forthat hishe returnwill tocome Monetaristback idealsto believinglife they shallin befull repairedglory and printusher modestlyin duringa hisnew era secondof comingeconomic. He shall continue to offer up printers, non believers, and monetary workers until his messiah returns. Since this has yet to happen, all he usually has to show is better economic policy. After a few years, he is eventually exorcised from his host once they order a new printer or begin increasing their money supply in any way.

*[[File:Keynes.png]] [[Keynesianism]] - He believes the Governmentgovernment should focus on Governmentgovernment Spendingspending in times of crisis, I think the Governmentgovernment should focus on Moneymoney Supplysupply. Overall we still agree on Centralcentral Bankingbanking and the suchlike, so we respect eachothereach other.