If monetary policy does not cause a change in interest rates, can it still affect the output

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If monetary policy does not cause a change in interest rates, can it still affect the output gap and the inflation rate? Briefly explain.

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Money Banking And The Financial System

ISBN: 1801

3rd Edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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Question Posted: Jan 03, 2019 12:05 PM

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If monetary policy does not cause a change in interest rates, can it still affect the output

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Yes through the banking lending channel In the bank lending cha...View the full answer

Money Banking And The Financial System

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