IntroductionThe world economy has experienced a number of remarkable variations, such as the Great Depression of the 1930s and the difficult period of the 1970s, which led to adjustments and changes in monetarist policy. Therefore, one cannot deny the great contributions of a number of famous experts in economics in general and macroeconomics in particular, such as Adam Smith, John Maynard Keynes and especially Milton Friedman, who devoted their direct advice to strengthening the economy. which is known as theories of monetarism. In particular, Vietnam is one of the countries that suffers from the difficulties of high inflation rate, which may mainly result from the excessive expansion of money supply by the government. This essay will examine the fundamental theoretical ideas behind Milton Friedman's approach to inflation, also focus on the strengths and weaknesses of realist practices, and highlight the positive influences on the Vietnamese economy in the long term. Understanding Keynes (1943) argues that government and monetary authorities should pursue a policy of relaxed monetarism by increasing the quantity of money that can support the maintenance and stabilization of the national macroeconomy. Furthermore, he also believes that limited growth in the money supply is not a sufficient condition for stabilizing the price level. His approach helped reduce the unemployment rate and raise the price and wage level in the difficult times of the 1970s. However, it also led to a high inflation rate because the government provided a large amount excessive money at this time. On the other hand, according to Friedman 1980a, "monetary restriction is a sufficient condition for controlling...... middle of paper...... allocate resources to avoid the inefficiency of investment capital, the budget deficit as well as to avoid danger. a high inflation rate. Additionally, it should be expected to maintain a steady growth in money supply, estimated at 4-5%, as this can be a suitable method to achieve stable economic growth without suffering from inflation. Conclusion Friedman's approach made a great contribution to the inflation issue in the difficult times of the 1970s. His solution was to limit monetary expansion and pay the short-term price of increased unemployment. This theory supports the stabilization of overall price developments as well as the price level, which helps both consumers and businesses make informed and better spending and investment decisions. However, this also generates certain difficulties for businesses, especially in the case of the Vietnamese macroeconomy...