TAILIEUCHUNG - Lecture Business economics - Lecture 32: Monetary and fiscal policy

In this chapter you will learn the theory of liquidity preference as a short-run theory of the interest rate, analyze how monetary policy affects interest rates and aggregate demand, analyze how fiscal policy affects interest rates and aggregate demand, discuss the debate over whether policymakers should try to stabilize the economy. | Lecture 32 Monetary and Fiscal Policy Instructor: Abbas Course code: ECO 400 Lecture Outline Monetary Policy B. Fiscal Policy Monetary Policy Monetary policy is concerned with regulation of quantity, cost and allocation of money and credit in the economy. It is a mechanism, which has serious implication for economic development .It helps individuals decide the amount and place of investment, rate of savings and spending. Monetary Policy Definition of Monetary Policy The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault Money policy in many countries has been kept away from direct arena of government. The government only establishes basic rules and eventual targets. .

• Kinh tế học
• Business economics
• Lecture Business economics
• Business applications of economics
• Open economy
• Competitive markets
• Economic Models
• Principles of economics
• Economics of agriculture
• Monopolistic competition
• Macroeconomic policy
• Supply curve
• Elasticity of demand
• Consumer choice
• Competitive firms
• Imperfect competition
• Gross domestic product
• Financial intermediaries
• Productivity growth
• Natural rate of unemployment
• Labor force
• Money supply