What is the opposite of Keynesian economics?

By Ritesh|Updated : September 1st, 2022

Keynesian economics can be contrasted with monetarist economics. It is a direct attack on Milton Friedman's Keynesian economics theory.

Keynesian theory focuses on government spending, while monetarist economics emphasizes the management of the currency in the economy.


Opposite of Keynesian Economics - Monetarist

  • Monetarist economics refers to Milton Friedman's frontal critique of John Maynard Keynes' Keynesian economics theory.
  • Simply expressed, the key distinction between these two schools of thought is that Keynesian economics focuses on government spending, whereas monetarist economics includes regulating money in the economy.
  • Monetarists contend that the economy's money supply should be managed while the rest of the market is left to correct itself.
  • Conversely, Keynesian economists contend that a struggling economy would continue to contract unless an intervention encourages consumers to increase their purchases of goods and services, a struggling economy would continue to contract.
  • The main goal of monetarism is to manage the money supply to manage the economy.
  • Keynesianism emphasizes the use of public spending to manage the economy.
  • Monetarists contend that controlling the amount of money in circulation is the best way to combat inflation.
  • Keynesians value the impact of monetarism on GDP, but it takes too long for changes in the money supply to be felt.
  • Legislators employ both economic theories to formulate their monetary and fiscal policies.


What is the opposite of Keynesian economics?

Monetarist economics is the opposite of Keynesian economics. The Keynesian economics hypothesis of Milton Friedman is specifically attacked.


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