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Business
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| Number of pages / Number of words: |
2 / 449 |
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Another weakness is changes in velocity which will frustrate the monetary policy. This works against the Feds in time of inflation and recession. Monetary policy is less reliable in pushing the economy out of recession causing the economy to suffer from cyclical asymmetry.
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Ulrica Clark
Chapter 15
Monetary Policy
Monetary policy has some basic goals: to promote "maximum" sustainable output and employment and to promote "stable" prices. The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals...
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