2 factors determining the demand for holding money?
1.Income-higher the income the higher the demand 2.Rate of interest-higher the interest rate the higher the opportunity cost of holding money
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2 monetary policy objectives?
1.Monetarist era 2.Exchange rate and monetary policy
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2 monetary policy instruments?
1.Controlling the supply of money 2.Influencing the demand for money
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6 categories the Monetary Policy Committee consider?
1.Financial markets 2.International economy 3.Money and credit 4.Demand and output 5.Labour market 5.Costs and prices
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Monetary Policy Stance?
Whether interest rates are intended to either stimulatie or depress aggregate demand, or else allow aggregate demand to grow in line with the economy's long term underlying growth rate
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