Monetarism emphasizes controlling which of the following to manage the economy?

Monetarism is an economic theory that emphasizes the role of governments in controlling the amount of money in circulation. According to monetarists, variations in the money supply have major influences on national output in the short run and the price level over longer periods. The belief is that by controlling the money supply, a central bank can influence economic conditions, including inflation and unemployment. This approach stands in contrast to other economic theories that may focus on fiscal policy tools such as government spending or tax rates to manage economic activity.

By focusing on the money supply, monetarists argue that stable monetary policy leads to long-term economic growth and minimizes the risks of inflation. This perspective was notably popularized by economist Milton Friedman, who famously stated that "inflation is always and everywhere a monetary phenomenon." Thus, understanding that controlling the money supply serves as the primary tool for managing the economy is essential to grasp the principles of monetarism.