Monetary policy

• The problems concerning the ability of monetary policy to influence the economy, as for instance the doubts about the ability of lower interest rates to stimulate investment, and employment.

• Mechanistic problems which may prevent the instruments from being effective, as for example the existence of excess liquidity in the system preventing open market operations from being effective.

Posted Date: 11/30/2012 4:38:45 AM | Location : United States

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