Keynesianism vs Monetarism
Keynesianism holds that market economies can stay stuck in recessions and that governments should manage overall demand through spending, taxes and interest rates to sustain employment.
- Total demand for goods and services drives output and employment in the short run.
- Markets can remain in a slump with high unemployment for a long time without help.
- Governments should run deficits in recessions and restrain spending in booms.
Monetarism is an economic school holding that the money supply is the main driver of inflation and short-run economic swings, and that steady, rule-based money growth is best.
- Inflation is caused mainly by money growing faster than the output of goods and services.
- Changes in the money supply affect output in the short run but mostly prices in the long run.
- Monetary policy works with long and variable lags, so fine-tuning is risky.
- Keynesianism: petals and stars
- Monetarism: dashed outline
★ Where they differ most
- Markets95 points apart
Keynesianism: Planned (mild). Monetarism: Free (strong).
- Welfare75 points apart
Keynesianism: Shared (moderate). Monetarism: Self-reliant (moderate).
- Foreign policy55 points apart
Keynesianism: Cooperation (moderate). Monetarism: Balanced.
- Trade35 points apart
Keynesianism: Global (moderate). Monetarism: Global (strong).
★ Where they are closest
- Technology · 5 apart
- Structure · 5 apart
- Security · 5 apart
Axis by axis
Monetarism
Economy
Equality / Markets- OwnershipMild: Private35%65%PublicPrivate
- MarketsMild: Planned65%35%PlannedFree
- WelfareModerate: Shared70%30%SharedSelf-reliant
State and liberty
Liberty / Authority- AuthorityModerate: Democratic75%25%DemocraticStrong leader
- SecurityBalanced50%50%LibertyOrder
- StructureMild: Central35%65%LocalCentral
Society
Progress / Tradition- MoralityMild: Progressive55%45%ProgressiveTraditional
- ReligionMild: Secular60%40%SecularReligious
- TechnologyMild: Embrace60%40%EmbraceCaution
- CultureMild: Multicultural55%45%MulticulturalNational identity
World
Global / Nation- TradeModerate: Global68%32%GlobalProtected
- Foreign policyModerate: Cooperation78%22%CooperationStrength
★ 12 Axes Political Test ★
How close are you to Keynesianism or Monetarism?
Answer plain statements on 12 axes and see your match with Keynesianism or Monetarism and every other profile on the site, axis by axis.
FAQ
Keynesianism vs Monetarism
What is the difference between Keynesianism and Monetarism?
Keynesianism holds that market economies can stay stuck in recessions and that governments should manage overall demand through spending, taxes and interest rates to sustain employment. Monetarism is an economic school holding that the money supply is the main driver of inflation and short-run economic swings, and that steady, rule-based money growth is best. On the 12 axes they differ most on markets, welfare, foreign policy.
What do Keynesianism and Monetarism have in common?
Their positions are closest on technology, structure, security. Overall their profiles are a 79% match on the 12 axes used by the 12 Axes Political Test.
Am I closer to Keynesianism or Monetarism?
Take the 12 Axes Political Test. Your result shows your match with both, and with every other ideology on the site, axis by axis.
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