ABSTRACT
This chapter sets out to explore two main issues. First, it summarises the key points of monetary theory accepted by most academic economists: the fundamental association between money and debt, the process of money creation in contemporary monetary systems, how the value of money is determined, and how inflation is theorised. Second, it describes the historical roots of monetarism, showing that it is a neoliberal doctrine centred on fighting inflation by depoliticising monetary policy. Thus, although recommendations may differ from one school to another, every neoliberal is a monetarist in that they share a common understanding of the nature of money and inflation.
