Monetarism is an economic theory that emphasizes the role of money supply in determining economic activity and inflation. It suggests that changes in the amount of money in circulation can directly influence prices and overall economic growth. Monetarists believe that controlling the money supply is crucial for managing economic stability. The theory gained prominence in the 1970s, largely due to the work of economist Milton Friedman. Monetarists argue that government intervention in the economy should be limited, advocating for a steady, predictable increase in the money supply to promote long-term economic health and reduce inflationary pressures.