A Keynesian Versus a Monetarist Perspective of Money and Monetary Policies

This paper aims to show the different approaches of monetary policies from a Keynesian and a Monetarist perspective. We will present a critical view about money and monetary theories by comparing two of the most important and influential schools of economic thinking: Keynesian paradigm and Monetarism. The later appeared as a reaction of the former, in a moment in which the existing solutions could not solve the negative phenomena the economy was confronted with. A change was necessary. But for how long Monetarism succeeded to be a solution for the economy? And what school considered money as having an active role for economic growth?