An economic theory holding that the supply of money is the key to a nation's economic health and that too much cash and credit in circulation produces inflation is called __________.

Question

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Monetarism is the economic theory that emphasizes the role of governments in controlling the amount of money in circulation. It posits that variations in the money supply have major influences on national output in the short run and the price level over longer periods and that objectives of monetary policy are best met by targeting the growth rate of the money supply. Monetarism gained prominence through the work of Milton Friedman.

An Economic Theory Holding That the Supply of Money Is