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- One problem is the difficulty in gathering and evaluating information about M1 and M2.
- Keeping track of the growth of M1 and M2 becomes more difficult as money is shifted from savings accounts into intrest-paying checkable accounts or from checkable accounts into money market deposits accounts.
What else can I help you with?
Some economists believe fiscal policy and monetary policy do not work very well.?
True
What is the Monetary Policy?
Monetary policy is economic policies usually guided by the central bank of a nation. The goals of monetary policy is often to promote economic growth while hold a low and steady inflation. The means of monetary policy is to adjust money supply or interest rate and in some cases regulation to cool off or boost the economy.
What are some issues that the Fed encounter when developing monetary policy?
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Features of current monetary policy in India?
The current monetary policy in India is under the authority of the Reserve Bank of India (RBI). Some of the features of the monetary policy are price stability, controlled expansion of bank credit, promotion of fixed investment, to promote efficiency and equitable distribution of credit.
What has the author Francis Scotland written?
Francis Scotland has written: 'Investment, a survey of models with some implications for the effects of monetary policy' -- subject(s): Mathematical models, Monetary policy, Investments
What are some recommended books that provide a comprehensive understanding of monetary policy and its impact on the economy?
Some recommended books for understanding monetary policy and its impact on the economy include "The Economics of Money, Banking, and Financial Markets" by Frederic S. Mishkin, "Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework and Its Applications" by Jordi Gal, and "Central Banking: Theory and Practice in Sustaining Monetary and Financial Stability" by Thammarak Moenjak.
What are some key considerations to keep in mind when formulating monetary policy questions?
When formulating monetary policy questions, it is important to consider factors such as economic indicators, inflation rates, interest rates, employment levels, and the overall state of the economy. Additionally, understanding the goals of monetary policy, the impact of policy decisions on different sectors of the economy, and the potential risks and trade-offs involved are crucial considerations.
What are various instruments of monetary policy used by RBI?
Some instruments of monetary policy used by the Reserve Bank of India are price stability, restriction of inventories, promotion of efficiency and reducing rigidity. By using this policy, the RBI is able to control the money supply of its country's economy.
What are some recommended books about monetary policy and its impact on the economy?
Some recommended books about monetary policy and its impact on the economy include "The Alchemists: Three Central Bankers and a World on Fire" by Neil Irwin, "Money, Banking, and the Financial System" by R. Glenn Hubbard and Anthony Patrick O'Brien, and "The Age of Turbulence: Adventures in a New World" by Alan Greenspan. These books provide insights into how monetary policy decisions are made and their effects on the economy.
What has the author Michael J Moore written?
Michael J. Moore has written: 'Some new tests of efficiency in the forward exchange market' 'Financial innovation and the neutrality of money' -- subject(s): Mathematical models, Monetary policy, Money 'Less of a puzzle: a new look at the Forward Forex Market' 'Monetary policy in stage two of EMU' -- subject(s): Monetary policy
What are the disadvantages of monetary policy?
Some of the disadvantages of monetary policy include conflicts that may arise when wwwtrying to make amends to an already existing problem. Often, fixing one problem gives rise to new problems such as inflation or poor saving.
What is the interaction between fiscal and monetary policy?
Fiscal policy chooses government expenditure and taxes. Monetary policy chooses interest rates to reach a set inflation target and minimise the output gap. The interaction in where fiscal authorities chooses a level of government expenditure that is not consistent with its steady state. This effects the output gap/inflation and thus interest rates, hence the interaction.
