monetarism
UK[ˈmʌnɪtərɪzəm]US[ˈmɑːnɪtərɪzəm]
n
An economic theory that emphasizes the role of governments in controlling the amount of money in circulation as the primary method of stabilizing the economy.
n
The political and economic policies based on this theory.
Morpheme Breakdown
monet
ar
ism
monet
money
ar
relating to
ism
doctrine or theory
Etymology
The word 'monetarism' is a modern construction built upon the ancient Latin foundation of moneta, meaning coinage or money. The suffix -ar transforms the monetary root into an adjectival form, "relating to money," which is then nominalized by the doctrinal suffix -ism. This etymological assembly directly mirrors the theory's core logic: it is the doctrine (-ism) concerning the management and effects of the money supply (monet-). The term emerged in the mid-20th century to describe the economic school of thought championed by Milton Friedman, which argues that variations in the money supply are the dominant influence on macroeconomic outcomes like inflation and business cycles.
Analysis
Structure: monet (money) + ar (relating to) + ism (doctrine or theory)
- monet: From Latin moneta (mint, money; also a title of the goddess Juno, in whose temple money was coined). Functions as the core root meaning "money."
- ar: A suffix of Latin origin (-aris), forming adjectives meaning "of, relating to, or connected with."
- ism: A suffix of Greek origin (-ismos), forming nouns denoting a system, theory, or doctrine.
Examples
The central bank's policy was heavily influenced by the principles of monetarism.
Critics of monetarism argue that it oversimplifies the complexities of the modern economy.
His academic work was pivotal in the revival of monetarism during the late 20th century.