Keynesianism held sway for the first quarter century after World War II. But the monetarist challenge to the traditional Keynesian theory strengthened during the 1970s, a decade characterized by high ...

Keynesian theory’s popularity waned then because it had no appropriate policy response for stagflation. Monetarist economists doubted the ability of governments to regulate the business cycle with ...

Monetarism can be thought of as somewhat reactionary to Keynesian economic thought. Keynesianism suggests that regulation of government spending in order to manipulate demand is the key to ...

Keynesian economics is a theory whose premise ... War I and was a proponent of the quantity theory of money known as monetarism, which advocates manipulating money supply to influence the economy.