ABSTRACT
This chapter shows how monetarism became dominant in the academic world in the 1970s and in the practice of monetary policy from 1979 to 2008, and how it has been contested since the 2008 financial crisis. The expansion of unconventional monetary policy and increasing tensions between governments and central bank authorities in some countries show that depoliticised monetary policy is no longer ascendant. In the academic world as well, heterodox voices contesting this view have emerged, such as the Modern Monetary Theory (MMT), a post-monetarist approach propounded by Stephanie Kelton, which is described in detail. The last sections of the chapter show that the monetarist approach cannot be challenged without a deeper understanding of the broader neoliberal framework in which it is embedded.
