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

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