Monetary economics formally emerged to be a field of study inside the 1950s through the technique of monetarism as referred to by economist Milton Friedman. Monetarism postulates in which government regulation of any nation’s money supply can ensure financial stability by retaining prices and inflation in check. In this means, monetary economics is definitely an offshoot of Keynesian economics, which calls for an active federal government role in balancing economic fluctuations.
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