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Monetarism

A school emphasizing stable money growth and skepticism that fiscal fine-tuning can manage the business cycle without igniting inflation.

Monetarists, prominently Milton Friedman, argued that erratic monetary policy deepened instability and that long-run inflation is “always and everywhere a monetary phenomenon.”

Central banking

Practical central banking absorbed some monetarist lessons (credibility, rules) while retaining discretion in crises.

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