What Is a Monetarist?

A monetarist is an economist who believes that the fundamental factor determining demand in an economy is the money supply, which includes physical currency, deposits, and credit. As a result, changes in the money supply may be used to control the economy’s growth or contraction. The influence of inflation on an economy’s growth or health, as well as the concept that managing the money supply may control the inflation rate, are the driving forces behind this view.