Transmission mechanism of monetary policy

Following is the transmission mechanism by which monetary policy influence the economy. The central bank is responsible for providing the funds to different banking systems of the country and in return they charge interest. Central bank is solely in charge … Continue reading

Macroeconomics And Monetary Policy

Macroeconomics and monetary policy have proved the two important strategies or tools that are utilized by the government policy makers to optimize the employment in an economy. These tools are also exercised for the sake of minimizing inflation and improving the overall standard … Continue reading

Expansionary Monetary Policy And Contractionary Monetary Policy – Difference

Federal Reserve System that we are having today, it was brought into existence after the introduction of Federal Reserve Act in the era of 1913. This act of Federal Reserve established a complete central banking system so that United States … Continue reading

Monetary Policy Inflation – Difference

Monetary policy is no doubt seems to be a simple idea but in fact it becomes complex and complicated when it comes to describe its impacts on the inflation and economy of the country as a whole. Definition of Monetary … Continue reading

How does monetary policy affect unemployment?

Unemployment rate is given a great importance by the official representatives and the workers because it has a profound effect on the economy of a country. Politicians pledge that they will introduce such economic policies that will raise the job … Continue reading