Effects of Expansionary Monetary Policy

Effects of Expansionary Monetary Policy

Introduction

Monetary Policy

Monetary Policy is primarily the process by which the authority which governs the monetary policy of a country controls the money supply that often is done in order to adjust the interest rate accordingly with a purpose of promoting the economic growth and to bring stability in the economy. The official and major goals of this policy usually are to include low unemployment and relatively stable prices. It can either be referred as expansionary or contractionary policy which expands the supply of money more slowly than the expansion one. Expansionary policy traditionally ...