Monetarism: Difference between revisions

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|title=[[File:Monet.png]] Monetarism
|title=[[File:Monet.png]] Monetarism
|image=Monetarism-2.png
|image=Monetarism-2.png
|caption="Stop the presses! When the second coming of Friedman returns so shall they!"
|caption=‘‘Stop the presses! When the second coming of Friedman returns so shall they!’’
|aliases=Neo-Chicagoan Libertarianism<br>Monetary Conservatism<br>
|aliases=[[File:Neo-Chilib.png]] Neo-Chicagoan School<br>Monetary Conservatism<br>
|alignments=[[File:Rightunity-yellow.png]] [[RightUnity]]
|alignments=[[File:Rightunity-yellow.png]] [[RightUnity]]
|song=
|song=
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}}
}}
'''Monetarism''' is an economically [[file:Cap.png]] [[Capitalism|right]] ideology, whose general economic theory was created by [[File:Friedman.png]] [[Chicago School|Milton Friedman]] to cure inflation. He believes that the government's primary role in the economy should be monetary policy with the goal of keeping inflation under control. Specifically, he thinks that there should be a very low inflation rate (1%-3%), and 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 Federal Reserve Chair and Nobel Prize winner Ben Bernanke, have been monetarists. Monetarist policies were used by Bernanke during the 2008 Great Recession with expansion of QE (Quantitative Easing) and the overall expansion of Money Supply.
'''Monetarism''' is an economically [[file:Cap.png]] [[Capitalism|right]] ideology, whose general economic theory was created by [[File:Friedman.png]] [[Chicago School|Milton Friedman]] to cure inflation. He believes that the government's primary role in the economy should be monetary policy with the goal of keeping inflation under control. Specifically, he thinks that there should be a very low inflation rate (1%-3%), and 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 Federal Reserve Chair and Nobel Prize winner Ben Bernanke, have been monetarists. Monetarist policies were used by Bernanke during the 2008 Great Recession with expansion of QE (Quantitative Easing) and the overall expansion of Money Supply.

==History==
==History==

===The Federal Reserve Under Ben Bernanke (2006-2014)===
===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 two years after his appointment during the 2008 Housing Crisis. The Federal Reserve ramped up Money Printing, as well as QE, in an attempt to stabilize the economy and ease off the pain caused by MBS. While most economists call the Federal Reserve's efforts a success, a few others, such as the staunch anti-fiat-currency Representative Ron Paul, criticized the Fed and Bernanke for the ensuing stagflation of 2012.
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 two years after his appointment during the 2008 Housing Crisis. The Federal Reserve ramped up Money Printing, as well as QE, in an attempt to stabilize the economy and ease off the pain caused by MBS. While most economists call the Federal Reserve's efforts a success, a few others, such as the staunch anti-fiat-currency Representative Ron Paul, criticized the Fed and Bernanke for the ensuing stagflation of 2012.


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==Beliefs==
==Beliefs==

Monetarism is an approach to Macroeconomics which stresses a large focus upon Monetary Policy instead of Fiscal Policy, in contrast to [[File:Keynes.png]] [[Keynesian School]]. Monetarism prefers Monetary Policy over Fiscal due to its belief that Monetary Policy is significantly easier to change than Fiscal Policy, and can have a far greater effect on the most important issue (to him) which is inflation. While Monetarism is quite different from Keynesianism, they both hold the axiomatic beliefs of Central Banking, Fiat Currency and so forth, and are usually combined in some form.
Monetarism is an approach to Macroeconomics which stresses a large focus upon Monetary Policy instead of Fiscal Policy, in contrast to [[File:Keynes.png]] [[Keynesian School]]. Monetarism prefers Monetary Policy over Fiscal due to its belief that Monetary Policy is significantly easier to change than Fiscal Policy, and can have a far greater effect on the most important issue (to him) which is inflation. While Monetarism is quite different from Keynesianism, they both hold the axiomatic beliefs of Central Banking, Fiat Currency and so forth, and are usually combined in some form.


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#Draw blue lines on both edges of the red stripe,
#Draw blue lines on both edges of the red stripe,
#Draw the eyes and you're finished!
#Draw the eyes and you're finished!

{{Flag-auto
{{Flag-auto
|c1 = Red
|c1 = Red
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==Relationships==
==Relationships==
===Friends ===
===Friends ===

*[[File:Chilib.png]] [[Chicago School]] - My dad who neglects me at times.
*[[File:Chilib.png]] [[Chicago School]] - My dad who neglects me at times.
*[[File:Fiscon.png]] [[Fiscal Conservatism]] - We agree that economic policies must be fiscally responsible and long-term sustainable.
*[[File:Fiscon.png]] [[Fiscal Conservatism]] - We agree that economic policies must be fiscally responsible and long-term sustainable.
Line 70: Line 68:


=== Frenemies===
=== Frenemies===

*[[File:Hayek.png]] [[Hayekism]] - Free Banking doesn't prevent inflation.
*[[File:Hayek.png]] [[Hayekism]] - Free Banking doesn't prevent inflation.
*[[File:Keynes.png]] [[Keynesian School]] - He believes the government should focus on government spending in times of crisis, I think the government should focus on money supply. Overall we still agree on central banking and the like, so we respect each other.
*[[File:Keynes.png]] [[Keynesian School]] - He believes the government should focus on government spending in times of crisis, I think the government should focus on money supply. Overall we still agree on central banking and the like, so we respect each other.
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==Further Information==
==Further Information==

===Literature===
===Literature===

*[https://books.google.com/books?id=Q7J_EUM3RfoC A Monetary History of the United States] by [[File:Friedman.png]] [[Chicago School|Milton Friedman]] and [[File:Chilib.png]] [[Chicago School|Anna Schwartz]]
*[https://books.google.com/books?id=Q7J_EUM3RfoC A Monetary History of the United States] by [[File:Friedman.png]] [[Chicago School|Milton Friedman]] and [[File:Chilib.png]] [[Chicago School|Anna Schwartz]]
*[https://openlibrary.org/books/OL1717100M/A_program_for_monetary_stability A Program For Monetary Stability] by [[File:Friedman.png]] [[Chicago School|Milton Friedman]]
*[https://openlibrary.org/books/OL1717100M/A_program_for_monetary_stability A Program For Monetary Stability] by [[File:Friedman.png]] [[Chicago School|Milton Friedman]]


===Wikipedia===
===Wikipedia===

*[[w:Monetarism|Monetarism]]
*[[w:Monetarism|Monetarism]]
*[[w:Clark_Warburton|Clark Warburton]]
*[[w:Clark_Warburton|Clark Warburton]]
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*[[w:Monetary-disequilibrium_theory|Monetary disequilibrium theory]]
*[[w:Monetary-disequilibrium_theory|Monetary disequilibrium theory]]
*[[w:Friedman's k-percent rule|Friedman's k-percent rule]]
*[[w:Friedman's k-percent rule|Friedman's k-percent rule]]

==Gallery==
<gallery>
</gallery>


==Navigation==
==Navigation==
{{Navbox/Capitalists}}


[[Category:Economic Systems]]
[[Category:Economic Systems]]

[[Category:Status Quo]]
[[Category:Status Quo]]

Revision as of 04:12, 16 May 2023

Monetarism is an economically right ideology, whose general economic theory was created by Milton Friedman to cure inflation. He believes that the government's primary role in the economy should be monetary policy with the goal of keeping inflation under control. Specifically, he thinks that there should be a very low inflation rate (1%-3%), and 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 Federal Reserve Chair and Nobel Prize winner Ben Bernanke, have been monetarists. Monetarist policies were used by Bernanke during the 2008 Great Recession with expansion of QE (Quantitative Easing) and the overall expansion of Money Supply.

History

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 two years after his appointment during the 2008 Housing Crisis. The Federal Reserve ramped up Money Printing, as well as QE, in an attempt to stabilize the economy and ease off the pain caused by MBS. While most economists call the Federal Reserve's efforts a success, a few others, such as the staunch anti-fiat-currency Representative Ron Paul, criticized the Fed and Bernanke for the ensuing stagflation of 2012.

While controversial in extremely libertarian or leftist circles, most consider the chairmanship of Ben Bernanke to have had a positive effect. He was succeeded by Janet Yellen, one of his deputies, in early January of 2014.

Beliefs

Monetarism is an approach to Macroeconomics which stresses a large focus upon Monetary Policy instead of Fiscal Policy, in contrast to Keynesian School. Monetarism prefers Monetary Policy over Fiscal due to its belief that Monetary Policy is significantly easier to change than Fiscal Policy, and can have a far greater effect on the most important issue (to him) which is inflation. While Monetarism is quite different from Keynesianism, they both hold the axiomatic beliefs of Central Banking, Fiat Currency and so forth, and are usually combined in some form.

Personality and Behaviour

Monetarism is a specter of ancient theory (circa 1950) that occasionally is summoned by nations being plagued by high inflation and prices. After possessing a local central banker, he will destroy printers as penance to Milton Friedman, hoping that he will come back to life in full glory and usher in a new era of economic. 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.

How to Draw

Flag of Monetarism
  1. Draw a ball,
  2. Draw a red stripe through the middle vertical third of the ball,
  3. Draw blue lines on both edges of the red stripe,
  4. Draw the eyes and you're finished!
Color Name HEX RGB
Red #D90200 217, 2, 0
Blue #416494 65, 100, 148


Relationships

Friends

Frenemies

  • Hayekism - Free Banking doesn't prevent inflation.
  • Keynesian School - He believes the government should focus on government spending in times of crisis, I think the government should focus on money supply. Overall we still agree on central banking and the like, so we respect each other.

Enemies

Further Information

Literature

Wikipedia

Navigation

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