... resurrected older economic doctrines in building his monetary theory and his ideas, expounded in the classic Studies in the Quantity Theory of Money (1956), marked the beginning of modern monetarism as a distinct line of economic thought. Monetarism, a word coined in the 1960s by Karl Brunner, is a complex concept that has no universally accepted formal definition. Most generally, contemporary monetarism refers to the idea that a stable relationship exists between the growth of the stock of money in the economy and national income.2 Therefore, monetarists place an exclusive role of changes in the growth rates of monetary aggregates in explaining the course of the business cycle, including changes in nominal and real income and inflation.3 According to Karl Brunner, the core of monetarism can be summarized in the following series of propositions: First, monetary impulses are a major factor accounting for variations in output, employment and prices. Second, ...

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