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Monetary Policy (Mechanisms CB us to control supply (Interest Rates…
Monetary Policy
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Define
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the ability to change the quantity of money and its availability and the cost of money or interest rates in order to bring about changes in inflation, employment, investment to promote stability and growth.
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Conclusion
But in the short run, because prices and wages usually do not adjust immediately, changes in the money supply can affect the actual production of goods and services. This is why monetary policy is a meaningful policy tool for achieving both inflation and growth objectives.