MONEY

Money

Money

Regarding the issue of how monetary policy actually impacts the economy, there are many different theories. A number of economists still hold the position that monetary policy has no impact on real economic variables, such as the number of people with jobs or the amount of goods and services produced, and that attempts to use monetary policy only result in inflation. Most economists agree with this statement in the long run, but believing it is true in the short run is now a minority position, as much evidence shows that monetary policy can have a short-term impact on the real economy.

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