What are some basic tenets of monetarist theory of economics?

Answer by  Vanasatchy (816)

The basic tenets of monetarist theory of economics are monetary economics money supply, national income monetary policy and price level.

Answer by  tamarawilhite (17883)

Monetarist theory focuses on money as having value in its own right, not the goods, services, and human effort involved in creating products and services. It also studies the effect of money "flow" and monetary valuation (inflation and deflation) and its impact on an economy. Rather than studying people and what they make, it studies money volume.

Answer by  LohnJaw (122)

The basic idea is that the amount of currency in a system can significantly affect its function, and the monetary theorists spend much time contemplating and measuring the causes and effects of inflation and various rates on it.

Answer by  danieljitaru (277)

he gross domestic product (GDP) is the generally accepted measure of the size of the national economy. It is the sum of investment, personal consumption, government spending, and net exports. Personal consumption, at 70 percent, is the largest component of GDP. Other components of GDP include