Monetary policy works to stabilize economic conditions by using three tools to increase or reduce the money supply: reserve requirements, interest rates, and open market conditions. Some economists believe that monetary policy is a short-term solution to a long-term problem, and that people will eventually regret artificially stimulating the economy.

To complete the Discussion activity, write a post that answers the following questions:

• Describe your opinion of the use of monetary policy.
• Do you think it should be used at all? Explain.
• What would be the consequences of eliminating monetary policy, and why?
• What are the long-term consequences of keeping monetary policy? Explain.

Post your response to the discussion board.