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What is Milton Friedman and Monetarism Explained about?

The monetarist school studies the effects of variations in the money supply on economic variables. Its main proponent was Milton Friedman, a Nobel Prize winner in 1976. Monetarist theory is based on the quantitative theory of money, which establishes the relationship between the money supply, prices, and the volume of transactions. Monetarists believe that the state should limit itself to monetary policies to maintain stability, and that markets self-regulate better without state intervention.

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