Monetary Policy

HideShow resource information
definition of monetary policy
decisions on the rate of interest, money supply and the exchange rates
1 of 5
expansionary monetary policy
decrease interest rates, increase money supply and exchange rates will depreciate
2 of 5
contractionary monetary policy
increase interest rates, decrease money supply, exchange rates will appreciate
3 of 5
will monetary policy work in a recession
no because it is only effective in the short run. people will also not take out loans cuz of low confidence
4 of 5
will monetary policy work in growth
yes because people will take out loans and credit cards and start spending
5 of 5

Other cards in this set

Card 2

Front

expansionary monetary policy

Back

decrease interest rates, increase money supply and exchange rates will depreciate

Card 3

Front

contractionary monetary policy

Back

Preview of the front of card 3

Card 4

Front

will monetary policy work in a recession

Back

Preview of the front of card 4

Card 5

Front

will monetary policy work in growth

Back

Preview of the front of card 5

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Monetary Policy resources »