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

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

Explain about the terms in perfect competition, Explain about the terms in ... Explain about the terms in perfect competition. Perfect Competition: a. A price-taking producer is a maker whose actions have no consequence onto the market price of the g

Revenue, definition of total revenue,marginal revenue,average revenue definition of total revenue,marginal revenue,average revenue

Basis of wage claims, The Basis of Wage Claims The union's demand for ... The Basis of Wage Claims The union's demand for higher wages is normally based  on one or more of the following four arguments: 1. The cost of living argument This is

Economic effects of taxation, ECONOMIC EFFECTS OF TAXATION a.  A det... ECONOMIC EFFECTS OF TAXATION a.  A deterrent to work Heavy direct taxation, especially when closely linked to current earnings, can act as a serious check to production

International trade, INTERNATIONAL TRADE Definition It is the exc... INTERNATIONAL TRADE Definition It is the exchange of goods and services between one country and another.  International Trade can be in goods, termed visibles or in servi

Explain about transaction cost theory, Q. Explain about Transaction Cost Th... Q. Explain about Transaction Cost Theory? The below model reveals market and institutions as a possible form of organisation to coordinate economic transactions. When external

Normal and supernormal profits, NORMAL AND SUPERNORMAL PROFITS Normal ... NORMAL AND SUPERNORMAL PROFITS Normal profit refers to the payment necessary to keep an entrepreneur in a particular line of production. In economics, it is generally belie

Explain what is meant by price discrimination, Problem 1: a) Explain wh... Problem 1: a) Explain what is meant by ‘price discrimination' and what are the different types of price discrimination. b) Under what conditions is it possible and profitabl

Real rigidities in the goods market, Real Rigidities in the Goods Market  ... Real Rigidities in the Goods Market   The most important factor associated with real rigidity in  the goods market  is the existence of  imperfect  competition.  Imperfect comp

Neutrality of money and classical dichotomy, Question 1: a. Discuss th... Question 1: a. Discuss the alternative theories of money demand. b. Highlight the impact of financial liberalization on the money demand in a small island developing econo