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C11: macro policies - Coggle Diagram
C11: macro policies
monetary : use BNM to control money supply
to solve UE
lowering reserves requirement
BNM lower reserves req
money supply in CB increase
CB can offer more loan to consumer
cash increase in consumer
purchasing power increase
econs expand
lowering discount rate
lower discount rate
CB can borrow more money ( MS increase )
CB can offer more loans to consumer
purchasing power increase
econs expand
open market - purchase bond
BNM buy bond from people
people receive cash
money supply increase
purchasing power increase
economy expand
lowering interest rate
BNM persue CB to lower its interest rate
CB can offer more loan to consumer
purchasing power increase
econs expand
to solve UE :expansionary monetary
to solve inflation
increase discount rate
increase interest rate
close market- sell bond
BNM sell bond to people
money supply decrease
purchasing power decrease
econs slow down
increase the reserves req
TO SOLVE INFLATION : contractionary monetary
fiscal : use tax & G expenditure
to solve UE : expansionary fiscal
tax decreasing
income burden decrease
cash in consumer increase
purchasing power increase
econs expand
G expenditure increase
subsidies increase
cash in consumer increase
purchasing power increase
econs expand
to solve inflation : contractionary fiscal
tax increase
income burden increase
cash in consumer decrease
purchasing power decrease
econs slow down
G expenditure decrease
subsidies decrease
cash in consumer increase
purchasing power increase
econs expand