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Likewise, decreasing the reserve ratio creates more money to lend. When the government buys stocks on the open market more money is also available (McConnell and Brue, 2005). Monetary policy creates several ways for the government to influence interest rates and the availability of money. However, like fiscal policy can also be set back by time lags...
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However, like fiscal policy can also be set back by time lags. Another factor that can have a negative impact on monetary policy, is the reluctance of firms to borrow.
Automotive companies must take these policies into consideration when looking at its strategy and how to better or maintain their position within the market...
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Automotive Benchmarking
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