However in modern times the Nobel Prize for Economics stands out in 1976, which contributed to this current economic thought with the theory of permanent income. Monetarism, as we can see, has had great thinkers and outstanding men. Basically that this current of thought presents with respect to economic measures. Knowing some of its most outstanding exponents we can describe some of the measures. Another fact about this great economist is the well-known Fisher effect, which describes the rate of inflation that is anticipated on the interest rate. And adds to the theories of many other thinkers and economists of monetarist theories the world-known exchange equation. However it can also have a function to preserve the value between the different transactions.Ĭonsidered the flagship economist of the United States of America and recognized author of The Theory of Interest. Actually who assure that the value of money is beyond their function of allowing transactions and commercial exchanges. They and those were influenced by their theories and thoughts. Actually who, as the name implies, belonged to the prestigious University of Cambridge. It refers to a group of economists who belonged to the neoclassical currents of economic thought. Hence looked for ways to eliminate those barriers that prevented a greater income of goods and services in some countries. Moreover it is worth noting that he was a great critic of all Marxist doctrine. His ideas centered the value of private property as a means of exchange. He was a great defender of the theories of monetarism and an exponent of modern monetarism in the Chicago school.
#Principal definition economics free#
So such is the case of this Hungarian economist, who completely distrusted the state in economic matters and a faithful believer in free markets. To fully understand monetarism it is necessary to know the foundations of those who had the most influence in this current of thought.
#Principal definition economics full#
Its full focus is on studying and analyzing the demand for money and everything related to the money supply.
So it is worth noting that the monetarists do not adhere to the idea of other currents to use methodological individualism. However, they add that it is the task of governments to maintain economic stability. In their approach also defend concepts such as the free market. Especially as regards the basis of whether the money supply is equated with the demand for liquidity, prices will remain stable. To begin with, the monetarists share the classical and neoclassical view of the economy with respect to economic equilibrium. Hence also the general dependence on prices. Also the amount of money in circulation, the speed of circulation. Monetarism as we know it today is also a school of economic thought that has developed thanks to John Stuart Mill, who made well-known studies on money.
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