Monetarists argued that fiscal policy was ineffective if the money supply increased.

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Monetarists, led by Milton Friedman, primarily argued that controlling the money supply was the key to managing the economy, rather than fiscal policy (government spending and taxation). They believed that changes in the money supply have major effects on economic activity and inflation, rather than fiscal policy being ineffective if the money supply increased.

Monetarists Argued That Fiscal Policy Was Ineffective If the Money