- This theory relates changes in inflation to the level of the money supply in relation to the level of real output. Monetarism is also used as a generic term for neo-liberal economic theories (such as liberalization and deregulation). A monetarist revival occurred in the 1970s as a result of a period of stagflation (simultaneous rising unemployment and rising inflation). Keynesian theories failed to provide an explanation for this, but monetarism did. Monetarism, adopted by the Callaghan administration in 1976, was continued with marked enthusiasm by the Thatcher administration. By the mid-1980s, monetarism had lost popular countenance and strict control of money supply ceased. However, successive Conservative administrations have continued to give primacy to the reduction of inflation and free market ideals.ALASTAIR LINDSLEY
Encyclopedia of contemporary British culture . Peter Childs and Mike Storry). 2014.