What are two types of monetary policy?


There are two basic types of monetary policy. Expansionary and Contractionary. Expansionary monetary policy increases the money supply, while contractionary monetary policy decreases the money supply. Expansionary monetary policy can include purchasing government bonds, and decreasing the reserve requirement and the federal funds interest rate. An example of contractionary policy is the selling of government bonds.
Q&A Related to "What are two types of monetary policy?"
loose money policy and tight money policy.
Expansionary : - reduces interest rates, increases liquidity/ money flow and probably increases growth because businesses will do more business with soft loans and make more profits
There are four basic types of monetary policy strategies, each of
One of the big events in 1971 that affected the monetary policies of that era was the enormous trade deficit that occured between the US and other countries. Up until 1971 the United
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