Monetarism is an economic theory that focuses on the role of governments in controlling the amount of money ____ in the economy. It is based on the ____ theory of money, which can be expressed by the equation ____ = ____. According to this theory, if the ____ of ____ is stable, any increase in the money supply that ____ the increase in output will lead to an ____ in price ____. Monetarists argue that the main cause of ____ is ____, as loans from banks increase the money supply in an economy. Another significant cause is ____, especially when government spending exceeds its revenue from taxation. In conclusion, monetarists believe that to control inflation, it is crucial to control the money supply. They view both demand-pull and cost-push inflation as ____, rather than root ____, of inflation.

Understanding Monetarism

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