Market Monetarism is an economic theory that emphasizes the role of the money supply in determining economic activity and inflation. It suggests that central banks should focus on maintaining a stable growth rate of the money supply, rather than targeting interest rates or inflation directly. This approach aims to provide a clearer framework for understanding how monetary policy affects the economy. Proponents of Market Monetarism argue that using market indicators, such as the nominal GDP or market expectations, can help guide monetary policy decisions. By monitoring these indicators, central banks can better respond to economic changes and maintain stability, ultimately fostering a healthier economic environment.