Editing Neoliberalism (section)

=== Monetarism ===
{{Main |Monetarism}}
Monetarism is an economic theory commonly associated with neoliberalism.{{sfnp|Harvey|2005|p=}} Formulated by [[Milton Friedman]], it focuses on the macroeconomic aspects of the [[supply of money]], paying particular attention to the effects of [[central bank]]ing.<ref>{{cite web |last1=McCallum |first1=Bennett T. |title=Monetarism |url=https://www.econlib.org/library/Enc/Monetarism.html |website=The Library of Economics and Liberty |access-date=July 8, 2019}}</ref> It argues that excessive expansion of the money supply is inherently inflationary and that monetary authorities should focus primarily on maintaining [[price stability]], even at the cost of other macroeconomic factors like [[economic growth]].

Monetarism is often associated with the policies of the [[Federal Reserve System|U.S. Federal Reserve]] under the [[Chair of the Federal Reserve|chairmanship]] of economist [[Paul Volcker]],{{sfnp|Harvey|2005|p=}} which centered around high interest rates that are widely credited with ending the high levels of inflation seen in the United States during the 1970s and early 1980s<ref>{{cite news |last=Hutchinson |first=Martin |date=November 4, 2008 |title=To Treat the Fed as Volcker Did |work=[[The New York Times]] |url-access=subscription |url= https://www.nytimes.com/2008/11/05/business/05views.html}}</ref> as well as contributing to the [[Early 1980s recession in the United States|1980–1982 recession]].<ref>{{cite web |title=Paul Volcker |website=Encyclopædia Britannica |url=https://www.britannica.com/biography/Paul-Adolph-Volcker |access-date=July 8, 2019}}</ref> Monetarism had particular force in Chile, whose central bank raised interest rates to counter inflation that had spiraled to over 600%.<ref name="World Bank-2019"/> This helped to successfully reduce inflation to below 10%,<ref name="World Bank-2019"/> but also resulted in job losses.