the idea that an economy can be controlled by its central bank influencing the money supply (= amount of money in the economy at a particular time). For example, the central bank can influence the amount of bank lending by increasing or lowering interest rates
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Theory that advocates strict control of money supply as the major weapon of monetary policy, especially against inflation.
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monetarism UK US /ˈmʌnɪtərɪzəm/ US /ˈmɑnɪtəˌrɪzəm/ noun [U]
► ECONOMICS the idea that a country’s economy is influenced to a large degree by the money supply : »
Monetarism has contributed to wage and price inflation.
Financial and business terms. 2012.