Editing Economics (section)

==== Monetarism ====
{{Main|Monetarism}}

Monetarism appeared in the 1950s and 1960s, its intellectual leader being [[Milton Friedman]]. Monetarists contended that monetary policy and other monetary shocks, as represented by the growth in the money stock, was an important cause of economic fluctuations, and consequently that monetary policy was more important than fiscal policy for [[stabilization policy|purposes of stabilisation]].<ref>Blanchard et al. (2017), p. 511.</ref><ref name="fed">{{cite web|url=http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm|title=Remarks by Governor Ben S. Bernanke|publisher=The Federal Reserve Board|date=8 November 2002|first=Ben|last=Bernanke|access-date=22 February 2009|archive-date=24 March 2020|archive-url=https://web.archive.org/web/20200324160935/https://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm|url-status=live}}</ref> Friedman was also skeptical about the ability of central banks to conduct a sensible active monetary policy in practice, advocating instead using simple rules such as a steady rate of money growth.<ref>Blanchard et al. (2017), p. 512.</ref>

Monetarism rose to prominence in the 1970s and 1980s, when several major central banks followed a monetarist-inspired policy, but was later abandoned because the results were unsatisfactory.<ref>Blanchard et al. (2017), p. 483–484.</ref><ref name="Historical">{{cite web |title=Federal Reserve Board - Historical Approaches to Monetary Policy |url=https://www.federalreserve.gov/monetarypolicy/historical-approaches-to-monetary-policy.htm |website=Board of Governors of the Federal Reserve System |access-date=29 October 2023 |language=en |date=8 March 2018}}</ref>