The main theories of monetarism are as follows: ① Money supply has a decisive influence on nominal income; ② In the long run, money is neutral; There is a stable mechanism in the economic system, which can automatically tend to equilibrium, but the government's macroeconomic policies will destroy this equilibrium.

Policy proposition: ① Oppose Keynes's fiscal policy. According to monetarism, fiscal policy will eventually play a role by adjusting the money supply and then affecting interest rates. In addition, the existence of "crowding out effect" greatly reduces fiscal policy. (2) Oppose discretionary monetary policy. This proposition is mainly due to the lag of policy. Monetarism holds that a long-term monetary growth rate should be determined by the average economic growth rate plus the population growth rate.