Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Image transcription text Monetary policies as instruments to promote economic growth Instructions Read the following premise carefully and answer the questions specifically and in detail.
References:
Chowdhury, A., & Popov, V. (Eds.). (2019). Macroeconomic policies in countries of the global south. Nova Science Publishers.
Disponible en la base de datos EBSCOhost en la Biblioteca Virtual.Links to an external site.
- . Capítulo 3: Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation
- . 1. Introduction
- . 2. Fiscal Policy in Developing Countries: From Persistent Scepticism to Fiscal Rules
- . 3. Trends in Fiscal Policy
- . 4. Critical Evaluation of Orthodoxy
- . 5. Revitalising Fiscal Policy for Addressing Inequality
- . Capítulo 7: Monetary Policy for Inclusive and Sustainable Development
- . 1. Introduction
- . 2. Monetary Policy: From Reasonable Price Stability for Orderly Economic Growth to Single- Digit Inflation Targeting
- . 3. Monetary Policy, Growth, and Poverty: Theories and Evidence
- . 4. Inflation-Targeting and Central Bank Independence: A Critical Appraisa
Monetary policies as instruments to promote economic growth Instructions Read the following premise carefully and answer the questions specifically and in detail. Keep in mind that, to obtain the total value that corresponds to each question, you must answer the request with the correct information, demonstrating that you understand and can properly apply the concepts studied. Try to address all elements of each question and always express answers in your own words. Faced with unstable economic growth due to a recession or accelerating inflation, the Fed uses the open market operation to increase or decrease the available reserves of commercial banks, which, in turn, will affect the amount of money available in the economy. . In addition to open market operation, the Fed has other tools available to promote a country's economic growth, sustainability, and stability. These tools have been used historically; an apt example was the 2008 mortgage debt crisis. Explains in detail monetary policy, its role, and its effects on short- and long-term economic fluctuations. It uses the aggregate demand and supply model presented in the course. Explain each of the tools that exist in expansionary monetary policy and contractionary monetary policy. It expresses in detail the effects of monetary policy, expansionary and contractionary, on income and the price level. Using the premise presented as a basis, it argues about the intervention of monetary policy as instruments to promote the growth, sustainability and economic stability of a country. (Gives an example in detail.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Monetary policy refers to the actions taken by a central bank such as the Federal Reserve in the United States to manage the money supply and interest rates to achieve specific economic goals Its prim...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started