Monetarism is an economic theory that emphasizes the role of a country's money supply in determining inflation, employment, and economic growth. The theory, most closely associated with economist Milton Friedman, posits that controlling the supply of money through mechanisms like interest rates and banking regulations can stabilize an economy and control inflation. In this view, fiscal policy—such as government spending and taxation—is often considered less effective than monetary policy in influencing economic performance. Monetarism has been influential in shaping the policies of central banks and economic institutions around the world, although it has also been subject to critique and debate. It has been a foundational concept for free-market advocates and has had significant influence on modern macroeconomic policy.