What are the FOUR INSTRUMENTS OF MONETARY POLICY and how are they changed in cases of inflation and deflation
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Definition: Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
The effects of monetary policy … 1. The range of our ignorance Though many macroeconomists would profess little uncertainty about it, the profession as a whole has no clear answer to the question of the size and nature of the effects of monetary policy on aggregate activity.
The effects of monetary policy … 1. The range of our ignorance Though many macroeconomists would profess little uncertainty about it, the profession as a whole has no clear answer to the question of the size and nature of the effects of monetary policy on aggregate activity.
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