In the bank lending channel as it operates through commercial banks, an expansionary monetary policy is not
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In the bank lending channel as it operates through commercial banks, an expansionary monetary policy is not dependent for its effectiveness on a reduction in interest rates, and a contractionary monetary policy is not dependent for its effectiveness on an increase in interest rates. How can an expansionary monetary policy be effective without reducing interest rates to stimulate spending, and how can a contractionary monetary policy be effective without increasing interest rates to slow down spending?
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Related Book For
Money Banking And The Financial System
ISBN: 1801
3rd Edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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