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@jemoka / Jemoka Knowledge Base / wiki/concepts/monetarist_theory.md
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--- title: "Monetarist theory" type: concept related: [Milton Freedman, Keynsian Politics, Demand Driven Theory, Monetarist Theory] source: https://www.jemoka.com/posts/kbhmonetarist_theory/ confidence: high status: active --- Monetarist theory is a theory of economics proposed by Milton Freedman which asserts that Keynsian economics only applies in the limited case that central bank need to keep the money supply growing; otherwise, the free market can handle itself. Therefore the Monetarist theorists propose that the stock market crash of 1929 was caused that the US monetary fund did a bad job of actually controlling the funds, and didn’t inject enough money into economy. See also the opposite: demand-driven theory.