The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Phillip Cagan
Reference work entry


Monetarism is the view that the quantity of money has a major influence on economic activity and the price level and that the objectives of monetary policy are best achieved by targeting the rate of growth of the money supply.


Brunner, K. Budget deficits Cash balance approach Central banks Chicago School Consumer expenditure Consumption multiplier Crowding out Friedman, M. Gold standard Inflation Keynesianism Liquidity trap Meltzer, A. Mints, L. Monetarism Monetary approach to the balance of payments Monetary base Monetary targeting Monetary transmission mechanism Money supply Natural rate of unemployment Phillips curve Quantity theory of money Rational expectations Simons, H. Stabilization Unemployment Velocity of circulation 

JEL Classifications

This is a preview of subscription content, log in to check access.


  1. Andersen, L.C., and J.L. Jordan. 1968. Monetary and fiscal actions: A test of their relative importance in economic stabilization. Federal Reserve Bank of St Louis Review 50: 11–24.Google Scholar
  2. Angell, J. 1933. Monetary control and general business stabilization. In Economic essays in honour of Gustav Cassel. London: Allen and Unwin.Google Scholar
  3. Baumol, W.J. 1952. The transactions demand for cash: An inventory theoretic approach. Quarterly Journal of Economics 66: 545–556.CrossRefGoogle Scholar
  4. Brunner, K. 1968. The role of money and monetary policy. Federal Reserve Bank of St Louis Review 50: 8–24.Google Scholar
  5. Brunner, K. and A. Meltzer 1964a. The Federal Reserve’s attachment to the free reserve concept. U.S. Congress House Committee on Banking and Currency, Subcommittee on Domestic Finance, April.Google Scholar
  6. Brunner, K., and A. Meltzer. 1964b. Some further investigations of demand and supply functions for money. Journal of Finance 19: 240–283.CrossRefGoogle Scholar
  7. Brunner, K., and A. Meltzer. 1976. An aggregative theory for a closed economy. In Studies in monetarism, ed. J. Stein. Amsterdam: North-Holland.Google Scholar
  8. Cagan, P. 1965. Determinants and effects of changes in the stock of money 1875–1960. New York: Columbia University Press.Google Scholar
  9. Frenkel, J.A., and H.G. Johnson, eds. 1976. The monetary approach to the balance of payments. Toronto: University of Toronto Press.Google Scholar
  10. Friedman, M. 1948. A monetary and fiscal framework for economic stability. American Economic Review 38: 256–264.Google Scholar
  11. Friedman, M. 1960. A program for monetary stability. New York: Fordham University Press.Google Scholar
  12. Friedman, M. 1968. The role of monetary policy. American Economic Review 58: 1–17.Google Scholar
  13. Friedman, M., and D. Meiselman. 1963. The relative stability of monetary velocity and the investment multiplier in the United States, 1897–1958. In Commission on money and credit, Stabilization policies. Englewood Cliffs: Prentice-Hall.Google Scholar
  14. Friedman, M., and A.J. Schwartz. 1963a. Money and business cycles. Review of Economics and Statistics 45 (1): 32–64. Part II, Supplement.CrossRefGoogle Scholar
  15. Friedman, M., and A. Schwartz. 1963b. A monetary history of the United States 1867–1960. Princeton: Princeton University Press.Google Scholar
  16. Friedman, M., and A. Schwartz. 1970. Monetary statistics of the United States estimates, sources, methods. New York: NBER.Google Scholar
  17. Friedman, M., and A. Schwartz. 1982. Monetary trends in the United States and the United Kingdom their relation to income, prices and interest rates, 1867–1975. Chicago: University of Chicago Press.CrossRefGoogle Scholar
  18. Judd, J.P., and J.L. Scadding. 1982. The search for a stable money demand function: A survey of the post-1973 literature. Journal of Economic Literature 20: 993–1023.Google Scholar
  19. Laidler, D. 1978. Mayer on monetarism: Comments from a British point of view. In The structure of monetarism, ed. T. Mayer. New York: Norton.Google Scholar
  20. Mayer, T., ed. 1978. The structure of monetarism. New York: Norton.Google Scholar
  21. Mints, L.W. 1950. Monetary policy for a competitive society. New York: McGrawHill.Google Scholar
  22. Simons, H. 1936. Rules versus authorities in monetary policy. Journal of Political Economy 44: 1–30.CrossRefGoogle Scholar
  23. Tobin, J. 1956. The interest elasticity of transactions demand for cash. Review of Economics and Statistics 38: 241–247.CrossRefGoogle Scholar
  24. Warburton, C. 1946. The misplaced emphasis in contemporary business-fluctuation theory. Journal of Business 19: 199–220.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Phillip Cagan
    • 1
  1. 1.