Monetary policies

This is the direction of the economy through the variables of money supply and the price of money.  Expanding the supply of money and lowering the rate of interest should have the effect of stimulating the economy, while a policy designed to reduce price and wage inflation by requesting voluntary restraint or by imposing statutory controls contracting the supply and raising the rate of interest should have a restraining effect upon the economy.  

Posted Date: 11/30/2012 4:30:14 AM | Location : United States

Ask an Expert

Related Discussions:- Monetary policy, Assignment Help, Ask Question on Monetary policy, Get Answer, Expert's Help, Monetary policy Discussions

Write discussion on Monetary policy
Your posts are moderated

Write your message here..

Related Questions

Supply-side policies for unemployment, Supply-side policies Supply-sid... Supply-side policies Supply-side policies are intended to increase the economy's potential rate of output  by increasing the supply of factor inputs, such as labour inputs and

The position of an economic relationship, Using the relationship among the ... Using the relationship among the price of a visit to a physiotherapist and the quantity of visits demanded, explain and distinguish between the direction, the slope, and the positi

Frugal economy, The Frugal Economy In the Frugal economy, households a... The Frugal Economy In the Frugal economy, households and firms look to the future, and as a result undertake both Saving and Investment. SAVING Saving is income no

Law of association, the benefits of exchange in the light of the law of ass... the benefits of exchange in the light of the law of association, the introduction of money in direct exchange and way income gets distributed among market participants

Elasticity, determinants of price expectation of elasticity determinants of price expectation of elasticity

State the characteristics of managerial economics, CHARACTERISTICS OF MANAG... CHARACTERISTICS OF MANAGERIAL ECONOMICS 1. Uses theory of firm: Managerial economics uses economic principles and conceptsthat are known as theory of Firm or 'Economics of the

Marrise model od growth, what are the instruments variable of marrise''s mo... what are the instruments variable of marrise''s model?

What is managerial economics according to spencer, What is Managerial econo... What is Managerial economics according to Spencer and Siegelman Spencer and Siegelman:  Managerial economics is "the integration of economic theory with business practice for t

Budgeting, types of capital budgeting types of capital budgeting

Market structures, Market Structures This refers to the nature and deg... Market Structures This refers to the nature and degree of competition within a particular market.  Capitalist economies are characterised by a large range of different market