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Essay

Monetary

Essay specific features

 

Issue:

Business

 

Written by:

Robin H

 

Date added:

February 15, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1639

 

Was viewed:

7936 times

 

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Essay content:

Expansionary monetary policy can stimulate growth and provide insurance against the possibility of deflation. This paper will present information on four topics: (1) tools used by the Federal Reserve to control the money supply, (2) how these tools influence the money supply and in turn affect macroeconomic factors? (3) how money is created? (4) recommended monetary policy combinations that best achieve a balance between economic growth, low inflation, and a reasonable rate of unemployment...
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According to the Encarta the definition of monetary policy is the following economic principles and programs adopted by a government that manage the growth of its money supply, the availability of credit, and interest rates. In the United States, the Federal Reserve Board determines monetary policy. Fiscal policy is the use of the government budget to affect an economy, Weils points out that when "the government decides on the taxes that it collects, the transfer payments it gives out, or the goods and services that it purchases, it is engaging in fiscal policy" (1)...
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