What's it: An expansionary monetary policy is a monetary policy aiming to increase the economy's money supply. The increased money supply should stimulate economic growth through aggregate demand. The injection of money stimulates consumer
Monetary Policy
Contractionary Monetary Policy: Effects, How it Works
What's it: A contractionary monetary policy is a monetary policy aimed at reducing the money supply's growth rate in the economy. Its aim is to reduce the pressure caused by high inflation and to cool the economy. High inflation can lead to
Liquidity Trap: Concept, Causes, Impacts, Possible Solutions
What's it: A liquidity trap is a situation in which an expansionary monetary policy cannot further lower interest rates. As a result, these policies are unable to generate economic growth or push up the inflation rate. When
Monetarist: Meaning, View on Inflation
Monetarist refer to economists who hold a strong belief that changes in the money supply are the main determinants of economic performance and business cycle behavior. In their argument, the economic health of a country depends on monetary
Monetary Policy: Purposes, Tools, Types
Monetary policy is a macroeconomic policy to influence the money supply and credit in the economy. The central bank or monetary authority is responsible for implementing it. Purpose of monetary policy Monetary policy aims to influence
Money: Meaning, Types, Importance, Functions, Demand, Supply
What's it: Money is everything we use or accept widely as a means of payment for goods and services, including coins and banknotes. It also functions as a unit of account and a store of value. It replaces barter payments in the modern