Definition of Money According to Monetarists or Modern Definition of Money:

The monetarists which are known as modern friends of classical economists have much more similarity regarding different issues. However, they also differ in certain fields. In connection with money monetarists say:

"Money Matters Very Much".

It means that according to monetarists money in an economy plays a very vital role. They say that aggregate expenditures of the economy are influenced by the changes in the rate of interest As a result, the level of income and employment can be affected. But it is confined to just short run. In case of long run there is always existing a natural rate of unemployment. It means that whenever through easy fiscal and monetary policies aggregate demand is increased, the level of unemployment will come down. But whenever aggregate demand is controlled prices will be stabilized, but economy will experience the same level of unemployment which the economy faced before increase in aggregate demand.