“Monetary Policy And Inflation Dynamics”

Essay specific features

 

Issue:

Business

 

Written by:

Everett O

 

Date added:

December 20, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 335

 

Was viewed:

6948 times

 

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Essay content:

Monetary policy is the regulation adopted by the central bank, which stabilizes the prices and maximizes production and employment of the country. Monetary policy is a regulation of a central bank which controls size and growth rate of the money supply. Monetary policy directly influences the interest rates which in turn has a negative relation with the price level...
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Monetary policy directly influences the interest rates which in turn has a negative relation with the price level. In the face of inflation the central bank of the country generally resorts to a rise in the cash reserve ratio, repo rate and reverse repo rate. The basic idea is to reduce the money supply in the economy...
displayed 300 characters

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