Monetary Policy

Words: 75
Pages: 1
Subject: Essays

Define monetary policy. Explain the 3 monetary policy tools and the economic context in which each tool ought to be used. Demonstrate how each monetary tool is to be used under high unemployment cases versus when inflation is the biggest threat in the economy. Explain the psychology behind using each of the 3 monetary tools when it is known that the economy is in recession versus when the economy is not thought to be in a recession.