Monetary policy

Type :

Term papers

Pages :

4 pages

Format :

.doc

Published date :

10/12/2009

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Summary :

 
 

Table of Contents Monetary policy Table of Contents

 
  1. Introduction
  2. Manipulation of the US money by Federal Reserve Bank
  3. The impact of energy prices on inflation
  4. Federal Reserve's 'loosening' or 'tightening' the money supply
  5. Monetary policy shocks
  6. Regulating operations of the stock market
  7. Creation of money
  8. The U.S. economic system
  9. Conclusion
  10. References

Abstract

monetary policy changes have influence over unemployment, short-term production and in the long-run affect prices and inflation rates. What monetary policy can do to heighten economic performance is a challenge that must be understood by economic policymakers. What monetary policy cannot do to raise economic performance is equally important. If a lower rate of inflation is achieved when a central bank slows the money growth rate it can take awhile to reach the transition state of lower inflation. A period of distressed economic activity is also to be expected. Higher unemployment is the result. Sometimes the Federal Reserve can go too far in extending the money supply, which can lead to inflation.

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About the author :

pencil image DG F. Freelance journalist
Level :General public Study : Journalism School/University : University of Kentucky, University of Phoenix

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